ISA fixed or fixed term account

neil324

I have money coming back from an Icesave ISA only about 6.5K. Anyway i wanted to put it into a fixed ISA, which i cant find any that allow transfers in (ive used up this years ISA in another fixed ISA).Rates are going fall fast on account now for sure.

Now im going to being using the money in 2 years time anyway so would it be better to put it into a fixed term account and lose the tax free status.

Ainsdale

Hello Neil 324

Have you seen the fixed rate ISA from Halifax (Fixed Rate Halifax ISA Saver)?

http://www.halifax.co.uk/isas/fixedrateisa.asp?source=NETGOOGLSAVEWS1260001

With 6.5K it looks like you would get 5.5% for a year. Not a high rate compared to some recently, but it might look quite good in a few months time if the interest rates continue to tumble. They will open an account over the telephone and guarantee the current rate for 60 days, which ought to be long enough to transfer from your Icesave.

At least it maintains the tax free status. Hope this helps.

Baldur

neil324 wrote: »

...i wanted to put it into a fixed ISA, which i cant find any that allow transfers in...

Halifax FRISA appears to accept transfers - http://www.halifax.co.uk/isas/fixedrateisa.asp

If you already have an ISA with another provider and want to take advantage of our cash ISA interest rate, ask to transfer your ISA today

opinions4u

"[FONT=Arial, Helvetica]Transferring to a fixed rate ISA[/FONT]
[FONT=Arial, Helvetica]If you ask to transfer to our fixed rate ISA, interest rates may change before the transfer has been completed."[/FONT]

If you go with Halifax get something in writing that guarantees the rate!

neil324

Keeps going on about your only allowed 1 ISA a year and if you have opened another this year then to use the ISA transfer, which dose'nt work.....

OK yeh got it to work, says the rate can change, haven't recieved money or certificate yet.

Baldur

neil324 wrote: »

Keeps going on about your only allowed 1 ISA a year and if you have opened another this year then to use the ISA transfer, which dose'nt work.....

OK yeh got it to work, says the rate can change, haven't recieved money or certificate yet.

As Ainsdale posted above:

They will open an account over the telephone and guarantee the current rate for 60 days, which ought to be long enough to transfer from your Icesave.

latecomer

Does it state on the website that they will guarantee the rate for 60s if its opened by phone as I cant find it?

latecomer

powerRIP wrote: »

Is a fixed rate ISA really worthwhile?

Well if you are looking long term then its even more important to get as good a rate as possible as the real benefit of ISAs is in compounding the interest over the years. If you have say £10,000 and the difference between a fixed and variable rate is 2% AER then its £200 lost over 12 months. Thats makes it worth it to me and thats why I'm going to transfer my existing ISAs into a fixed rate one.

opinions4u

latecomer wrote: »

Does it state on the website that they will guarantee the rate for 60s if its opened by phone as I cant find it?

I think you need to call them, get the full name of the agent you speak to, and get the process moving.

08457 26 36 46.

I would anticipate further reductions in fixed rates over the next few days.

Ainsdale

latecomer wrote: »

Does it state on the website that they will guarantee the rate for 60s if its opened by phone as I cant find it?

I have not seen it on the website, but that was what they told me over the phone. If you are concerned about just having it from a named person over the phone, you could always send them an e-mail as well to clarify?

Baldur

powerRIP wrote: »

ok understood. I just wasn't sure if everyone realised they cannot add their annual allowance into a fixed ISA. I guess we all have different circumstances.

I currently have 3 fixed rate ISAs running, two 1-year accounts at 6.5% (all previous tax years' funds) and one 4-year at 6.2% (current tax year's funds) - just because you can't add to an individual FRISA doesn't mean that you can't have other FRISA accounts.