Interest Rate Rises

[Sarah]

Chase UK

Good news – we're increasing the Chase saver account interest rate from 1.5% AER (1.49% gross) variable to 2.1% AER (2.08% gross) variable, effective from 24 October 2022.

[Sarah]

Marcus

New underlying interest rate
1.75% AER/1.74% gross* (variable)

That becomes 2.00% including the 0.25% bonus. Takes effect from 18 October.

[Sarah]

Club Lloyds Monthly Saver is back 5.25% gross/AER on max £400 per month
https://www.lloydsbank.com/savings/club ... saver.html

[Sarah]

Ford Money

In line with Our Best Rate Guarantee we’re increasing the interest rate on our Flexible Saver effective 19th October 2022 as follows:

Current rate New higher rate
1.93% Gross 2.47% Gross

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

[parchedpeas]

Club Lloyds Monthly Saver is back 5.25% gross/AER on max £400 per month
https://www.lloydsbank.com/savings/club ... saver.html

Also a Monthly Saver (£250 per month) at 4.5%

If you've already opened these earlier in the year, you can close them through the app. Your interest is paid in that moment, and you can then reopen at the new rate for 12 months.

[Sarah]

In some circumstances Lloyds and Halifax accounts can also have a 'Renew' option that similarly swaps an existing account to a newer option.

[blythburgh]

The saddest thing about the interest rate rises is the mortgage rate. I occasionally read on local FB group a post asking if anyone knows of property for sale. And the follow up is always the same, "we are registered with local estate agents and check the internet daily but by the time we know the property is for sale it is sold.". We live east of the former A12 which is amongst the most desirable areas in the town. For sale boards were very quickly changed to sold boards. Now in the roads I have been driving down there are more for sale boards than sold ones. Even one sold one is now for sale again. A victim of a broken chain due to interest rises perhaps. Just because I have savings and no mortgage does not mean I am in despair about the higher rates at the moment.

[Chadwick]

The saddest thing about the interest rate rises is the mortgage rate. I occasionally read on local FB group a post asking if anyone knows of property for sale. And the follow up is always the same, "we are registered with local estate agents and check the internet daily but by the time we know the property is for sale it is sold.". We live east of the former A12 which is amongst the most desirable areas in the town. For sale boards were very quickly changed to sold boards. Now in the roads I have been driving down there are more for sale boards than sold ones. Even one sold one is now for sale again. A victim of a broken chain due to interest rises perhaps. Just because I have savings and no mortgage does not mean I am in despair about the higher rates at the moment.

Friends of mine have just abandoned their plans to move house because they can't afford it any more. £400/month extra for the properties they were looking at.

There is of course another very valid view that the formerly very low interest rates could only possibly move in one direction. They weren't going to get significantly lower. So if you were committing to a 25 year mortgage it was reasonable to assume your mortgage payment would rise at some point, and prudent to take on a mortgage where you could afford that rise. I'm sure many of us recall double digit mortgage rates being normal.

[blythburgh]

Sadly many buyers cannot remember and the rate rises have been awful the last few weeks taking eveyone by surprise. Well everyone who did not take notice of Sunak in the TV debate. He told Truss what would happen and was proven right.

I think the savvy lock in the interest rate and your household income will be greater by the time the lock comes to an end. But the rates shot up just at the time inflation is in double figures. And food inflation is horrendous.

[Luke_PieStalker]

Where do we think interest rates will settle eventually? 6%+? And if so what returns might you get on a long term bond/isa? 7,8%?

Looking at things from a savers point of view.