ISA - Rates in New Tax Year

RB2008_2

hi,

with rates currently so poor (top isas paying around 3.2-3.3% typically) how likely is it (taking into account trends in previous years) that when the next tax year comes around the rates available will be higher to attract new savers....

i've seen that rates have been creeping up recently.....just was curious to see what people thought and how likely this will be.

cheers.

Baldur

From my own observations, rates usually tend to increase at the end of each tax year, to attract any funds which have not been allocated to the current tax year's ISA products - they then tend to be withdrawn fairly soon into the new tax year, as they tend to become oversubscribed.

RB2008_2

thanks! does anyone think that current isa rates are likely to get any better in the short term then? pie in the sky question I accept that.....

withnell

Well Barclays are offering 3.6, and Natwest 3.5 to new money at the moment - which suggests rates are on the up

cocktail

hopefully a few more better rates should arrive in the next few weeks. trick is to pounce on them before they are withdrawn.