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AvidFan

Leeds Bs 4.6% Isa Signals A Sea-change In The Bond Market

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http://www.thisismoney.co.uk/savings-and-b...mp;in_page_id=7

If they do - get ready. For those who believe in cash, this bounce may be the best chance you've got of locking in at a decent rate.

Even those who hold something else but have ISAs should pay attention as everyone is surely interested in having their tax-free savings compound as fast as they can...

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This time last year interest rates were 5% so there will be lots of money tied up in fixed rates expiring as the year progresses. If the Building Societies want to hold onto that cash they will have to compete for it.

4.6% seems a lot now but it must still be cheaper for them than fixed rates they are currently paying.

I'm hoping for better rates Nov, Dec time but want 100% access.

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This time last year interest rates were 5% so there will be lots of money tied up in fixed rates expiring as the year progresses. If the Building Societies want to hold onto that cash they will have to compete for it.

4.6% seems a lot now but it must still be cheaper for them than fixed rates they are currently paying.

I'm hoping for better rates Nov, Dec time but want 100% access.

Newcastle were doing 5% bonds and ISAs (fixed, 5 years) with 90-day penalty free withdrawals. They pulled them as soon as the offer appeared on MSE.

You either need a desperate BS or a general bounce in inflation / money velocity / the pound / lending / feel good factor to get interest rates back up.

If they move in proportion with base rate changes, we should be seeing 6% or higher within a year and at least 5.x% penalty free notice accounts by the end of this year.

Edited to add: As the article says, they'll have to bow to consumer expectations.

If the whole of the retail savings base shifts back to easy access, combined with the "faster payments" system, we could see money starting to move very quickly.

Edited by AvidFan

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Five year fix at 4.6%? You must be joking. Even last year this rate would have seemed paltry - with inflation almost certain to kick off in the next couple of years this 'deal' is almost guaranteed to lose you money in real terms. Awful deal.

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Five year fix at 4.6%? You must be joking. Even last year this rate would have seemed paltry - with inflation almost certain to kick off in the next couple of years this 'deal' is almost guaranteed to lose you money in real terms. Awful deal.

Have to agree. Hold out for 5%+ easy access or a fixed rate notice account. But it's a sign things may be starting to improve slightly.

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Five year fix at 4.6%? You must be joking. Even last year this rate would have seemed paltry - with inflation almost certain to kick off in the next couple of years this 'deal' is almost guaranteed to lose you money in real terms. Awful deal.

That's why I want 100% access.

Savers on long term fixed rates risk being screwed. If you have to pay a withdrawal penalty the fixed rate isn't as good as it seems. If the B of E keeps printing money the day will come when interest rates shoot up, then those on fixed rates with no access are well stuffed.

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