Barclays Bank New ISA 6.50 AER

Aegis wrote: »

Likewise... However, I'm planning on calling them up to see what they say, and moving away to a competitor if the Tax Beater rate doesn't stay high enough (which is likely given their recent letter announcing that they're removing the guarantee to stay at a higher rate than 2% BELOW base rate!)

Best thing with 2007/08 Taxbeater ISA is to be thinking of a new home for it around 30 days before the 1% bonus is due to be taken off as its probable the rate will fall 0.25% around 3rd March with further Base Rate falls also probable during the 2008/09 tax year.

Someone posted last week a belief that Barclays will be allowing its Branches to open the new ISA so as to avoid Taxbeater ISA account openings problems recurring.

Innys wrote: »

If you have more than £9k and don't need access to the money, the Lloyds product has to be a better bet.

After all, interest rates are only likely to go one way in the next 12 months.

True just that not everybody has 9000 in easily accessible ISAS.

Id also say that if 6.15% One year fixes are still available on 6th April they will be a better bet than Barclays variable rate ISA for people who dont have 9000.00 in easily accessible ISAS for reasons that you mention.

Old_Slaphead wrote: »

If you can lock money away for 4 years (and I know not everybody can) Halifax FR ISA offers a decent 6.20%.

Has their been a forecast of low interest rates 2/3 years into the future ? :think:

My reading indicates that the Deputy Bank Governor is extremely concerned about inflation.

http://www.thisismoney.co.uk/news/article.html?in_article_id=431115&in_page_id=2

I agree a 1 year or possibly 2 year 6.15% fix to be a good idea, i wouldnt want to second guess past 2 years into the future.

While some people will be happy to fix for 3 or 4 years, nobody can say today that 6.20% is a decent rate 2, 3 or 4 years ahead as interest rates could leap up in 2 years time, someone might say well they could be lower in 2/3 years time, true but unlikely imo as interest rates usually rise after a General Election.

Old_Slaphead wrote: »

last year I completed a 5 year 5.55% Leeds ISA and the only time it was slightly uncompetitive was during the last 3 months - for most of the time it was well ahead of the 'going rate'.

To be fair u arent really very far into the 5 year term yet to be able to judge.

Most MSE frequenters have been earning 6.05% + on their ISAS during the last 12 months, so im suprised by your belief that it has only been during the last 3 months that a 5.55% rate has been uncompetitive.

e.g even after current rate falls, NS&I is now down to 5.8% ish ( having been at as high or higher levels throughout the last 12 Months)

Barclays Tax Beater ISA after March 1st will be around the 6.51%AER level. (having been at a as high or higher level throughout the last 12 Months) You may say well the 1% bonus will be getting removed in a few months, true will take many Base Rate decreases for the 6.25% ISA rates that Barclays ISA can be transferred to to get down to 5.55% rate level.

As u are aware many are fixing with Nationwide for 1 and 2 years at 6.15% * that rate has been available since July 2007 and those with 9000 in accessible ISA savings are fixing for 12 months at 6.50%. ( before that many fixed with Halifax for differing amount of years at over 6%)

Will also take 4 Base rate decreases for this Barclays ISA issue to get down to 5.55% ish.

Anyway im gonna say u seem to have made a very shrewd move by fixing at 5.55% even though i neither believe so nore would i recommend that anybody fixes so long into the future.