Interest Rates

[Maydup]

Is 4.75% a good rate for savings at the moment? Should I fix at that or keep looking around?

[ToraToraTora]

yes that's very good.

[Paigntonian]

Keep it and cradle it like a baby.

[bobbinwales]

Good if its no notice or fixed for a year or less. Is it a sharia one??

[Bazile]

On the face of it .

What type of account ?

[barry1010]

I've just fixed for 12 months at that rate

[barry1010]

Mine is fixed rate 12 month, no withdrawals with Shawbrook Bank

[barry1010]

Apologies, mine is 4.5%
https://www.shawbrook.co.uk/direct/savings/personal-savings/fixed-rate-bonds/

[Maydup]

It’s fixed for 3 years, is with Nationwide, but no withdrawals allowed.

1 year is 4%
2 years is 4.5%
3 years is 4.75%

[Atheist]

With high inflation, interest on savings might well go up in the next year or two. I get regular e-mails from my savings provider telling me that they have just increased the interest rate. I tend to avoid fixed rate at the moment.

[Gizmonster]

1 year fix = 4.5% with Shawbrook Bank
2 year fix = 4.77% with Tesco Bank
3 year fix = 4.9% with Close Brothers

Have a look here:
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

[ToraToraTora]

It's a good rate but for tying up your money for 3 years you'll get about £150 per £1000. You do better out of premium bonds.

[davebro]

//It's a good rate but for tying up your money for 3 years you'll get about £150 per £1000. You do better out of premium bonds.//

Not with the average return you won't - PBs make less that 2%. Of course if you happen to win one of the million pound "prizes"....

[ToraToraTora]

Yes dave but at least you have a chance of a big prize.

[davebro]

ask Martin Lewis

[ToraToraTora]

He's right and so are you but I just like the idea that I get a return, instant access and a chance of a bigger prize. That's all I'm saying. Pure return alone of course the 4.75% is great but after 3 years of tying up your dosh you've got very little to show for it.

[davebro]

I think rates may go higher so I'm holding off for now.

[davebro]

(already maxed on PBs)

[barry1010]

We are maxed out on PBs too

[THECORBYLOON]

TORATORATORA, "Pure return alone of course the 4.75% is great but after 3 years of tying up your dosh you've got very little to show for it."

Investing £1,000 in a fixed-rate bond at 4.75% pa for three year would give £149.39 in interest.

Using the Money Saving Expert premium bond calculator, investing £1,000 in premium bonds for three year would likely yield £50 with average luck.

[Maydup]

Thanks all. The rate seems pretty good, maybe I'll just take the 4.5% over 2 years and see what happens after that.

I have Premium Bonds and have won £50 in 60 years! It doesnt appeal to me to buy more, but it must be my turn for a big win soon!