negative interest rates

[Sarah]

The BoE base rate rise to 1.00% confirmed.

The Bank of England has warned the UK economy will shrink this year as it raises interest rates to try and stem the pace of rising prices.

Rates rose to 1% from 0.75%, their highest level since 2009 and the fourth consecutive increase since December.

https://www.bbc.co.uk/news/business-61319867

[pabenny]

Coventry BS have again increased the rate on my existing regular saver - it's now 1.65%.

All credit to them - they could have left the rate unchanged as existing balances are effectively locked in and most people wouldn't bother to stop monthly payments.

[Sarah]

Ford Money

In line with Our Best Rate Guarantee we’re increasing the interest rate on our Flexible Saver effective 13th May 2022 as follows:

Current rate New higher rate
1.00% Gross 1.14% Gross

Not bad; this beats Marcus and Virgin Money M Plus Saver right now; but Chase UK at 1.50% still a much better rate for easy access.

https://www.fordmoney.co.uk/savings-pro ... ible-saver

[planteria]

Coventry BS have again increased the rate on my existing regular saver - it's now 1.65%.

good on cash in this climate. still alright with a no hassle, minimal opportunity cost, £100 account though

[Richard Frost]

1% mean return is very unattractive on premium bonds.
The big money 'prizes' skew the mean return and most holders earn considerably less than 1%. The more meaningful average is the median return.

It's taken a while, but NS&I has boosted the prize rate on Premium Bonds from next month, up from 1% to 1.4%.

[Sarah]

Ford Money

In line with Our Best Rate Guarantee we’re increasing the interest rate on our Flexible Saver effective 27th May 2022 as follows:

Current rate New higher rate
1.14% Gross 1.29% Gross

https://www.fordmoney.co.uk/savings-pro ... ible-saver

[Sarah]

Virgin Money M Plus Saver is now paying 1.56% (up to £25,000 and then 0.75% above that limit).

https://uk.virginmoney.com/current-accounts/pca/

[expressman33]

Some decent fixed rate bonds at Secure Trust Bank - 1 year 2.26% , 2 year 2.6% https://www.securetrustbank.com/savings ... r-accounts

[Luke_PieStalker]

What do we think about interest rates at present?

Rates are increasing with another base rate rise expected this week (?)

With rates on offer for 3% interest for a 2 year bond, do you think its worth locking your cash away?

A lot of factors to consider I know.

Inflation to hit 10% so even 3% is a disaster in comparison
Inflation will fall back though
Current base rate is 1% so you can get x3 that with bonds
If the rate increases throughout the year, in theory the savings rates on offer should follow

Decisions decisions. Thoughts ?

[planteria]

just that the rates have edged up, but still very little return on cash, and it's a negative real return.