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I'm no economist so I'll take your word for it on the need for a rise medium to long term, and in terms of mortgages fixed obviously makes sense anyway as it's a way of reducing risk in a risky world. If you fix your mortgage is not going to reduce in any significant way as you said.
However, are you sure about this?!
There's currently no benefit for anyone to have savings and operate their lives with any level of prudence.
Many jobs are at risk at the moment. Surely that's a good reason to have savings as a safety net? The normal advice is at least three months' worth of outgoings. It's not like you can rely on the welfare state any more...
Fox-
His comments are based on the low interest rates. If you have cash in the bank, your returns are zero, so it drives people to put money into other investment vehicles to get a better return on their money. It's how controling interest rates work as a monetary policy at a macro level.
Personal circumstances dictate what you actually do.
Aroogah
That is right yes. But in the medium to long term they will need to rise. The UK (and particularly because if its economic makeup) will need to work out how it moves out of a debt fuelled, cheap credit economy. The UK has so little resistance to further shock now, either centrally or distributed thorough its citizens.
There's currently no benefit for anyone to have savings and operate their lives with any level of prudence. And the govt will need people to do this in the long-term so that the burden on state is less severe than our current trajectory dictates.
I think taking a 2/3/5 year fixed is all the same really and would expect this to change in the following decade and for the 40-50 years after.