imutual.co.uk

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

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.

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

pabenny wrote: ↑

Wed May 11 2022 10:27am

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

pabenny wrote: ↑

Tue Sep 22 2020 7:21am

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%.

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

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/

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

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 ?

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