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    • Mikey351
    • By Mikey351 4th Oct 17, 10:19 AM
    • 1Posts
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    Mikey351
    November rate hike ?
    • #1
    • 4th Oct 17, 10:19 AM
    November rate hike ? 4th Oct 17 at 10:19 AM
    Hi everyone, just new to this forum, so apologies if there is alreafy a thread which I haven't spotted. I have yet to invest the full amount in a Cash Isa this year. What is the feeling on the forum if the Bank Rate goes up soon? Will there be a surge of new offers before April 2018, or might I just as well apply for one now?
Page 1
    • eskbanker
    • By eskbanker 4th Oct 17, 12:22 PM
    • 5,892 Posts
    • 5,853 Thanks
    eskbanker
    • #2
    • 4th Oct 17, 12:22 PM
    • #2
    • 4th Oct 17, 12:22 PM
    General sentiment on this forum is that putting money into cash ISAs is a complete waste of time and money!

    There are many better places to put your money, as covered in the various MSE editorial articles at https://www.moneysavingexpert.com/savings/ and forum threads on the savings board.
    • jimjames
    • By jimjames 4th Oct 17, 12:23 PM
    • 12,237 Posts
    • 10,774 Thanks
    jimjames
    • #3
    • 4th Oct 17, 12:23 PM
    • #3
    • 4th Oct 17, 12:23 PM
    If rates go up then they're likely to be back to 0.5% as they've been since 2009. Do you think that will increase cash ISA rates? I don't, certainly not to the level where they're better than current accounts
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Neil Jones
    • By Neil Jones 4th Oct 17, 12:46 PM
    • 1,013 Posts
    • 559 Thanks
    Neil Jones
    • #4
    • 4th Oct 17, 12:46 PM
    • #4
    • 4th Oct 17, 12:46 PM
    Hi everyone, just new to this forum, so apologies if there is alreafy a thread which I haven't spotted. I have yet to invest the full amount in a Cash Isa this year. What is the feeling on the forum if the Bank Rate goes up soon? Will there be a surge of new offers before April 2018, or might I just as well apply for one now?
    Originally posted by Mikey351
    Doubtful. The Personal Savings Allowance has made ISAs less appealing when you can earn £1k outside of them per tax year on higher rates of interest.

    As an example, best Cash ISA Variable rate: 1.1%, or £11 for every £1,000 you feed it with. Best Easy access non-ISA rate: 1.27%, or £12.70 for every £1k you feed that. You can therefore put about £78,500 in the 1.27% account to use your PSA up. While the ISA is tax-free and doesn't use your PSA, the difference in interest between the 1.1% and 1.27% on £78,500 is £133 which to that point makes it pretty much the same product to a degree.

    TL;DR, forget the ISA.
    • jimjames
    • By jimjames 4th Oct 17, 1:05 PM
    • 12,237 Posts
    • 10,774 Thanks
    jimjames
    • #5
    • 4th Oct 17, 1:05 PM
    • #5
    • 4th Oct 17, 1:05 PM
    Best Easy access non-ISA rate: 1.27%,
    Originally posted by Neil Jones
    Best easy access rate is 5% for regular saver, 3% for larger initial deposits using current accounts.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Neil Jones
    • By Neil Jones 4th Oct 17, 2:47 PM
    • 1,013 Posts
    • 559 Thanks
    Neil Jones
    • #6
    • 4th Oct 17, 2:47 PM
    • #6
    • 4th Oct 17, 2:47 PM
    Yes but not the point I was making, to get a current account is not guaranteed, I've been rejected three times for Tesco for example, and a Regular Saver is not the same thing as an ISA. So I used the 1.27% for example purposes.
    • Arthurian
    • By Arthurian 18th Oct 17, 9:32 AM
    • 627 Posts
    • 568 Thanks
    Arthurian
    • #7
    • 18th Oct 17, 9:32 AM
    • #7
    • 18th Oct 17, 9:32 AM
    The OP might have already used up as much as possible in other accounts such as bank current accounts. Personally, I don't expect a rush of good ISA offers just before the end of the financial year, but that's just a guess.
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