Interest rates

[Chris S]

The Bank of England have just increased interest rates. How long will it take for the rate to be passed on to savers?

I have a bond that matures next week. It might be worth waiting a few weeks before I reinvest it if interest rates are going to go up soon.

 

[tom73]

All depends on the provider. Some are instant like Monzo who pass on the rate as soon as it was made public.
Others are a lot slower at passing on. Only way you can be guaranteed to know when is to wait for them to notify you. Which they are legally required to do.

 

[wiggydiggy]

How long? As long as possible I think.....

Paragon, Sainsbury's and Tesco all have accounts with fairly decent int rates and instant access if you want to park the bond money somewhere for a while.

 

[Drago]

Bank Savings, brought to you by Rocket and Feather Corp, supplier of fuel to all good petrol stations.

 

[lazybloke]

Natwest have been quick with notifications, but i haven't looked at their rates yet.

 

[vickster]

The Bank of England have just increased interest rates. How long will it take for the rate to be passed on to savers?

I have a bond that matures next week. It might be worth waiting a few weeks before I reinvest it if interest rates are going to go up soon.

usually start to see deals after a week or two. I have a couple of Coventry BS accounts, rates up from 1 June.
Watch a platform like Raisin for bonds or MSE.
Santander usually have good rates. If you've not use your ISA allowance yet, fixed cash ISA a good tax free option

 

[mistyoptic]

Coventry BS notified me yesterday that their rates were increasing, about an hour after the BoE announcement. I was pretty impressed by that

 

[potsy]

Coventry BS notified me yesterday that their rates were increasing, about an hour after the BoE announcement. I was pretty impressed by that

Yes I got that message too, I'm expecting a 0.1% increase on my easy-ish access savings account..

 

[vickster]

Coventry BS notified me yesterday that their rates were increasing, about an hour after the BoE announcement. I was pretty impressed by that

indeed, but change only on 1 June

 

[annedonnelly]

I aways read the Money Saving Expert when I'm looking to move money about. He always highlights the best accounts for various options - including whether you want to use an app and how long you want to invest for. And he tends to say things like "these are likely to change in x weeks because of y happening".

 

[newts]

Natwest have been quick with notifications, but i haven't looked at their rates yet.

I had a quick scan at the Nat West page & could only see a minuscule increase on help to buy isa & savings builder accounts.

 

[lazybloke]

I had a quick scan at the Nat West page & could only see a minuscule increase on help to buy isa & savings builder accounts.

Looking again, I think it was an old announcement that predated the BoE announcement.

 

[sevenfourate]

I aways read the Money Saving Expert when I'm looking to move money about. He always highlights the best accounts for various options - including whether you want to use an app and how long you want to invest for. And he tends to say things like "these are likely to change in x weeks because of y happening".

He’s good !

But just do your own research too. I often check his page - but on two occasions I’ve gone against his advice - one of which was at the beginning of Energy prices rising due to the Ukraine situation when he advised those coming out of locked Energy rates / deals to go onto variable (I ignored this, locked into a cheap rate - which then all got withdrawn - and I suspect have saved perhaps ‘thousands”. And still am saving significantly every month currently)……

The other was a ‘savings’ advice where I did the same (Ignoring him) - based on how I read the situation….and again made a very smart move financially.

Point bring - he’s way smarter than me ! But not infallible……

 

[Jenkins]

I aways read the Money Saving Expert when I'm looking to move money about. He always highlights the best accounts for various options - including whether you want to use an app and how long you want to invest for. And he tends to say things like "these are likely to change in x weeks because of y happening".

This - if you can afford to lock the money away for another year or two and already have an ISA, check out the Fixed Rate Savings section as there's already a 1 year bond at 5% or two years at 4.95%.

I'm in the same boat as the OP as I have a bond paying out in June, about 2 weeks before the next Bank of England interest rate setting meeting.

 

[Jenkins]

Time to drag this one up again. The bond I mentioned above pays out this Saturday and I could re-invest it immediately and get 5.25% for a new 1 year bond or do I stick it in a holding account and see what happens with the next Bank of England decision on interest rates in about a couple of weeks?

The other option is a 2 (or more) year bond with a company like Tandem where the interest is paid out on an annual basis at 5.25% or 5.3% (about £1500 per year from my £30,000 pension lump sum), but the problem with a longer bond is there has to be a general election within the next 18 months and how would the market react to a change on Government?

ISAs are out as I already have one for this year, as are Premium Bonds (maximum already held)