Fixed rate savings rise AGAIN but should savers fix now or wait?
The recent rise in fixed rate savings has come as a welcome surprise for savers, with many banks and building societies increasing their rates. But with the Bank of England base rate expected to remain low until at least the end of 2021, the question of whether to fix now or wait is a difficult one.
For those who are looking for a guaranteed return, a fixed rate savings account is often the best option. With the current interest rate environment, the rates on offer are generally higher than those of instant access accounts, and the security of knowing that your return will not change during the fixed period can be attractive.
However, savers should be aware that rates are unlikely to rise significantly in the near future and that any changes, either up or down, will be gradual. As such, it is important to consider the length of the fixed period and the amount of interest you are likely to receive.
If you are looking for a short-term option, a short-term fixed rate savings account may be the best choice. This type of account usually has a fixed rate for a period of between one and five years, and can offer a good return if the base rate remains low.
On the other hand, if you are looking for a longer-term option, a longer-term fixed rate savings account may be more suitable. These accounts usually have a fixed rate for a period of up to 10 years, and can offer a higher return than short-term accounts. However, this type of account is also more risky, as the rate could fall if the base rate rises.
Ultimately, the decision of whether to fix now or wait depends on your individual circumstances. If you are looking for a guaranteed return, a fixed rate savings account may be the best option. However, if you are looking for a longer-term option, it may be better to wait and see what the Bank of England base rate does in the future.