Instant access Vs Term deposit

[Logo]

I am a Raisin customer with 2yr term deposit account. I'm interested in further investment and noticed that rates on interest access accounts appear attractive when compared to tying up savings for a fixed period. I realise that the rate is variable and has other conditions. I'm just wondering if instant access rates normally change gradually or does it decline to zero overnight. Thanks

 

[ClubMan]

I'm just wondering if instant access rates normally change gradually or does it decline to zero overnight.

They can change at any time if not fixed.

 

[Persius]

In my experience, they tend to change gradually. But no guarantees.

 

[shrinn]

does it decline to zero overnight

The interest on the instant access accounts mostly move with the ECB rates, and those move very slowly (the maximum and fastest reduction in recent years I think has been 0.25% every quarter)

 

[Logo]

Thanks for the relies. I do realise it's impossible to forecast the future but input from past experience is really helpful. Also special thanks @Lightning for the latest updates on rates.it is appreciated

 

[ClubMan]

(the maximum and fastest reduction in recent years I think has been 0.25% every quarter)

There have been some 0.25% changes (cuts) more frequently than quarterly in recent times. And some changes more than 0.25% in the past.

Official interest rates

The three official interest rates the ECB sets every six weeks as part of its monetary policy to steer the provision of liquidity to the banking sector.

www.ecb.europa.eu

E.g. 3 x 0.25% = 0.75% cuts over 8 months this year and a 0.5% increase in one go in early 2023.