Changing savings account with a possible Bank of England's base rate change soon

Robp122
Robp122 Posts: 2 Newbie
in Savings & investments
Hi there,
So there's lots of talk about the possibility of the Bank of England base rate going up soon and with this in mind, my question is this.
Do I change my current ISA account (currently at 0.50%) to one that's offering 1.06% or do I wait it out?
Thanks! :)

Comments

  • Alexland
    Alexland Posts: 9,653 Forumite
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    Its only going up 0.25pc at best so won't change the market much. The bigger concern is how rates might rise in other countries. Most people can do better than 1.06pc and still be tax efficient.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Robp122 wrote: »
    Hi there,
    So there's lots of talk about the possibility of the Bank of England base rate going up soon and with this in mind, my question is this.
    Do I change my current ISA account (currently at 0.50%) to one that's offering 1.06% or do I wait it out?
    Thanks! :)

    You are obviously giving little information to go on, but you can get up to ten times that return from current accounts, and up to six times the return post tax even if you are a higher rate taxpayer.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    Tart yourself around to the highest bidder.

    If the market changes, play the tart again.
  • jimjames
    jimjames Posts: 17,596 Forumite
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    Robp122 wrote: »
    Do I change my current ISA account (currently at 0.50%) to one that's offering 1.06% or do I wait it out?
    Thanks! :)

    Neither. Why would you settle for 1% when you can get up to 5% instead outside of cash ISAs?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • david78
    david78 Posts: 1,654 Forumite
    I would not expect instant access rates to move by much. Maybe 0.05%. Variable rate mortgages on the other hand will go up by more than the increase on day 1.
  • Robp122
    Robp122 Posts: 2 Newbie
    jimjames wrote: »
    Neither. Why would you settle for 1% when you can get up to 5% instead outside of cash ISAs?
    What would you suggest I go for? I have around 24k saved.
  • Keep_pedalling
    Keep_pedalling Posts: 16,587 Forumite
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    Robp122 wrote: »
    What would you suggest I go for? I have around 24k saved.

    Depends on your long term plans for this money. If it's for the long term (10 years or more) then I would be looking at a S&Ss ISA, if not then go for the higher interest rates available outside of ISAs, which you will still get tax free on that amount.
  • superstar_2
    superstar_2 Posts: 2,104 Forumite
    Providers of the 5% saving rates?
  • RG2015
    RG2015 Posts: 5,901 Forumite
    First Anniversary Name Dropper First Post Photogenic
    superstar wrote: »
    Providers of the 5% saving rates?
    Nationwide Flexdirect current account for 1 year and regular savers with Nationwide, Santander, M&S and First Direct.
  • Flobberchops
    Flobberchops Posts: 1,279 Forumite
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    Pragmatically speaking, I would wait for the proposed base rate change to happen (which it surely will, but who knows when), see what's on offer, and make your decision based on that.

    As others have mentioned, if you're after a significant return you shoudln't be in cash anyway, rate rise or no.
    : )
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