A Quick Financial Question For Anyone Who Is Qualified To Answer!

[MissTerious]

I've been on the supermod thread!

I'm talking to our financial adviser tomorrow. I am right in thinking that when interest rates rise that any money in a bank savings account will accrue more interest.

My qualification in economics was 58 years ago and my brain doesn't work any more.

Simple question really.

[MissTerious]

Am I right, not I am right!

[Tilly2]

It depends on when here bank puts the interest rates up, which they are very slow to do.

[barry1010]

You need to keep an eye on interest rates for savers and be prepared to swap accounts. Don't lock yourself in a long term account though, interest rates are likely to go up more

[ubasses]

All I would add is, that if you are a taxpayer make the most of your ISA allowance otherwise you are giving 20p in the £1 of your interest to HMRC.

[MissTerious]

All those sort of things I talk about with our advisor. It was just a quick confirmation I wanted because we might need to add to our offer on a house without touching investments. We have money in a bank savings account but I shall ask him if its best to use that.

So basically. It's just yes. Higher Bank rates can mean higher rates on savings.

I'm usually pretty good with dealing with our finances, but definitely brain dead at the moment.

Thank you.

[perseverer]

As a general rule, the first £1000 pounds of interest is not taxed ( but does depend on how much you earn/income tax band.)
In recent times ISA interest rates have often been poorer than ordinary savings accounts.

[MissTerious]

We don't pay tax and we have a very clever financial advisor. We are retired.