Will Savings Rates go Higher?

[Yants]

With 1-2 year fixes on Savings Accounts currently available at 5% does anyone think they'll go much higher or is this about as good as they'll get?

I've got a reasonable amount to invest and don't know whether to tie it up now or hold off for a couple of months. (Leaving it sat in my current account earning 0.01%!)

(I realise it's pretty much impossible to predict based on how stubborn or not inflation proves to be and how much longer they keep thinking raising interest rates will reduce it!)

If you're not sure, why not put it into a decent easy access while you decide? You could be making 4% or more.

Agree with this. I'm getting 4.21 on easy access. You could also split the rest across different length fixed rates. I have some on a 9 month about to mature and some fixed for a year. Gives a bit more flex than locking the whole lot up.

Doh! Good idea, I'd not thought about just sticking it in an Easy Access for now.

Still interested to hear people's thoughts on if savings rates will go much higher?

Actually jve just realised savings rates are already higher than when I last looked, 6.1% now available on 6 month - 2 year fixes!

I’m at the point where I leave next to nothing in a current account and have everything in a Chip account - 4.21% like a pp and instant access. It’s a no brainer!

Spread your risk - some in easy access, some in fixed rates, some in premium bonds.

Same. I was a little dubious about chip initially but transfers in and out are instant

In fact I've started doing all my daily spending on a credit card and then paying it off every month to earn a bit of interest on that money too. It's not much but better in my pocket than theirs! Of course you need to know you won't let a balance mount up but I've always tracked my spending so I felt confident I can keep it in control.

@Yants did you consider investing it in a long term index tracker?