Bank deposit accounts

PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
Does anyone have good advice of where to deposit 750k to 1 million for 6 or 12 months?

We're getting bad interest where we are, Santander seems best so far but that was still only around 2%

Why is that deposit interest is so low but borrowing interest is high, how does this base rate thing work work....


  • Poodle
    Poodle Registered Posts: 711 Epic contributor 🐘

    I may be really out of date with this but the banks (by banks I mean banks in the old term Barclays, Nat West etc) used to allow customers to place deposits on short term fixed investments linked to LIBOR for the sum of money you are talking about say over night, 7 days, 14 days etc. or invest in the Channel islands/ Isle of Man in the same way. The fixed rates used to be better and interest paid at the end of the term.

    Could be worth a phone call
  • truecockney
    truecockney Registered Posts: 94 Regular contributor ⭐
    I don't know anything about where the best rates are (maybe try a mutual Building Society or even the Post Office Bond accounts depending on any limitations?) but with the rates:

    Banks tend to base their lending rates on risk analysis. In the current climate the general lending risk is quite high so rates have risen and lending criteria tightened (I know that from personal experience), and savings rates tend to follow either LIBOR rates or BoE base rate.

    The general consensus at the moment is:

    BoE base rate < LIBOR < Savings rate < Lending rate
    {The first 3 rates do tend to flip around, especially when the BoE takes continuous action on their base rate while the others "follow suit"}
  • jay z
    jay z Registered Posts: 4 New contributor 🐸
    Hi PGM,
    remember.... interest rates on borrowing ul always be higher than interests earned on deposits!! banks trade to make profits!!! As for where to make your deposit, try and split your money in 2 or 3 amounts and see what happens! instead of dumping the whole thing into a single deposit account.

    keep up great!!!!
  • snowmarauder
    snowmarauder Registered Posts: 99 Regular contributor ⭐
    you dont want to rush in on any, as all of them, if they go down really only guarantee about 50k insured, plus libor banks, are brokers, they are governed by others. You need someone like LLoyds who are generally not libor. They set there own or they used to, best to trail the net for non libor, short term, then change. Loads of reading for you.
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    Thanks all, will give me some work to do!
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