Interest Rates

[Jenkins]

Thanks for confirming my thoughts about the tax on savings. Thanks to a bit of frugality & a pension lump sum, I've got about £80,000 in three accounts with a predicted total interest of around £1300. The good news (for me) is that two of the fixed rate accounts should pay out in different tax years and the other one pays the interest monthly which should keep me below the threshold for 2022/23.

 

[Chislenko]

I may well do but I can genuinely say if I had over 100k in my bank and eventually started earning a bit of interest I wouldn't lose too much sleep over paying a bit of tax on it.

I don’t really worry about much but if this keeps you up a night you might want to re assess your priorities a bit.

I slept really well last night 🙂

 

[Deleted User]

Calm down Shep. I don't need, or appreciate, a lecture on priority reassessment from you. 👍

Who said it keeps me up at night anyway?

No one needs or wants 'a lecture ' on any subject whatsoever on these type of forums but unfortunately you'll receive 'comments ' from people if they choose to reply to someone telling them what they 'may' feel like if they had 'over 100k' in the bank.

 

[Deleted User]

I slept really well last night 🙂

Well done.

 

[SpokeyDokey]

Thanks for confirming my thoughts about the tax on savings. Thanks to a bit of frugality & a pension lump sum, I've got about £80,000 in three accounts with a predicted total interest of around £1300. The good news (for me) is that two of the fixed rate accounts should pay out in different tax years and the other one pays the interest monthly which should keep me below the threshold for 2022/23.

With that amount, and depending on how/if you need to dip into those funds, then £3200+ pa is easily achievable as interest.

 

[Mo1959]

With that amount, and depending on how/if you need to dip into those funds, then £3200+ pa is easily achievable as interest.

I’m regretting reinvesting my £50,000 when I did with Tesco. Bloody rate has doubled now.

 

[SpokeyDokey]

I’m regretting reinvesting my £50,000 when I did with Tesco. Bloody rate has doubled now.

ISA?

If so, check the early termination penalty clause and some fag packet maths should let you know if they are worth moving.

We have a couple of fixed rate Isa's due to finish in Nov 2023 with 180 day interest penalty clauses.

We aim to double the current interest rate earned (possibly more after next week's BoE rate review) so paying the get out money is a no-brainer.

 

[potsy]

With a One year fixed bond paying 4.5% now, it would only take a 22k investment to get you around 1k of interest, any more and you'll be paying tax.
I'm thinking of doing that and keeping any extra in the PBs.

 

[Mo1959]

ISA?

If so, check the early termination penalty clause and some fag packet maths should let you know if they are worth moving.

We have a couple of fixed rate Isa's due to finish in Nov 2023 with 180 day interest penalty clauses.

We aim to double the current interest rate earned (possibly more after next week's BoE rate review) so paying the get out money is a no-brainer.

No a fixed term bond sadly. Never mind, it’s £95 a month so better than nothing.

 

[SpokeyDokey]

No a fixed term bond sadly. Never mind, it’s £95 a month so better than nothing.

That's a bugger; we have a fair chunk of money in a FRB with a Middle Eastern Bank. 5 year lock with 3 to run at 1.7%.☹️

Was a good rate a couple of years back.

 

[SpokeyDokey]

Hefty rise coming tomorrow at midday from BoE following the US +0.75% increase today.

 

[jowwy]

Hefty rise coming tomorrow at midday from BoE following the US +0.75% increase today.

I got mine sorted on tuesday before this rise comes in…..still cost me an extra 50 bucks a month though, fixed for 3yrs

 

[Jenkins]

Wonder if savings rates will head up again? With a lot of mine being tied up in a couple of one year bonds for al least another 5 & 8 months (the interest rates were very good at the time) it may be time to liquidate some or all of the Premium Bonds if the fixed rate bonds go up to near 6% for a 2 year term. It's a guess as to how much more the interest rates can keep rising or whether they will start to come down again soon.

 

[potsy]

Wonder if savings rates will head up again? With a lot of mine being tied up in a couple of one year bonds for al least another 5 & 8 months (the interest rates were very good at the time) it may be time to liquidate some or all of the Premium Bonds if the fixed rate bonds go up to near 6% for a 2 year term. It's a guess as to how much more the interest rates can keep rising or whether they will start to come down again soon.

I'm doing the same, probably just a one year bond though, don't want to tie it up for too long.

 

[SpokeyDokey]

Savings rates will definitely rise again after tomorrow.

Best 5 year ISA rates today 4.65% and FRB"s 5.1%.

We have 3 ISA's finishing end of this month to reinvest and 2 in Nov 23 that we are possibly going to dump and reinvest at a cost of 180 days lost interest.

Not made any decisions yet about reinvestment term lengths. Our general philosophy has been to grab the best rate available over the longest time available. Slightly unsure if that applies right now.

Predictions are that interest rates will peak mid-2023. Key number to watch is when inflation rate (CPI) starts to fall thereby cooling interest rates.