Which e-ISA? - fixed or variable

cottager

Which would you go for?

I have two ISA decisions to make:
1. Using up this year's allowance of £3,600
2. Finding a home for last year's Icesave ISA

After the interest rate cuts today, the two I'm considering are:
1. Halifax fixed for 12 months at 5%
2. Principality variable 5.50% (dropped from 6%)

The Icesave certificate hasn't come yet and rates may change again by the time it does, but forgetting that and assuming I could do both now, would you go fixed for a year at 5% or for the higher 5.50% variable which could drop some more?

I'm interested in others' attitudes to fixed or variable at this time, the way things are and not knowing when they'll drop again or by how much.

And a slightly different question: none of us knows, but in your minds how long are you thinking it might take before rates begin creeping up again?

Thanks!

fullstop

cottager wrote: »

Which would you go for?

I have two ISA decisions to make:
1. Using up this year's allowance of £3,600
2. Finding a home for last year's Icesave ISA

After the interest rate cuts today, the two I'm considering are:
1. Halifax fixed for 12 months at 5%
2. Principality variable 5.50% (dropped from 6%)

The Icesave certificate hasn't come yet and rates may change again by the time it does, but forgetting that and assuming I could do both now, would you go fixed for a year at 5% or for the higher 5.50% variable which could drop some more?

I'm interested in others' attitudes to fixed or variable at this time, the way things are and not knowing when they'll drop again or by how much.

And a slightly different question: none of us knows, but in your minds how long are you thinking it might take before rates begin creeping up again?

Thanks!

I would go for the fixed rate if possible 5% is pretty good as of today.
My guess about IR rising again, 12- 18 months ish!!

jd84

I had a similar choice to make and went with a 1 year fix as I don't think the variable rates will beat that over that amount of time.