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ISA advice - Fix or not - advice please

Hi,
I've got an ISA with Britannia. It was fixed at 6% which was REALLY good considering what's happened recently! That's fixed until Dec 09 ish. I've got about 7k in there. I've not added anything to this for a year or so.

I've also got an ISA with Abbey. This was the direct issue 2 which was good but is now about 2% if that. I've got 3.6k in here which i put in last April.

I'm looking come April to put 3.6k straight into an ISA again from a savings account.

Here are my options:
April - Put 3.6k into BRitannia - fixed till Dec09. Then likely to be rubbish after? Keep the Abbey ISA open and transfer to their newest version offering a better rate.
April - Put 3.6 into Abbey - likely to be a low rate.
April - Put 3.6 into a new one and transfer Abbey into this also - to be decided whatever is top of the polls come April for the rate?

What does anyone think my best options would be? The 6% fixed seems good but could drop silly low for the remaining months?

I'm keen not to have all my eggs in one baske even if it means losing a touch of interest.

I hope all of this makes some sense. Would appreciate any comments on this.
Thanks
Andy,

Comments

  • whu
    whu Posts: 23,461 Forumite
    10,000 Posts Combo Breaker
    Hi,
    I've got an ISA with Britannia. It was fixed at 6% which was REALLY good considering what's happened recently! That's fixed until Dec 09 ish. I've got about 7k in there. I've not added anything to this for a year or so.

    I've also got an ISA with Abbey. This was the direct issue 2 which was good but is now about 2% if that. I've got 3.6k in here which i put in last April.

    I'm looking come April to put 3.6k straight into an ISA again from a savings account.

    Here are my options:
    April - Put 3.6k into BRitannia - fixed till Dec09. Then likely to be rubbish after? Keep the Abbey ISA open and transfer to their newest version offering a better rate.
    April - Put 3.6 into Abbey - likely to be a low rate.
    April - Put 3.6 into a new one and transfer Abbey into this also - to be decided whatever is top of the polls come April for the rate?

    What does anyone think my best options would be? The 6% fixed seems good but could drop silly low for the remaining months?

    I'm keen not to have all my eggs in one baske even if it means losing a touch of interest.

    I hope all of this makes some sense. Would appreciate any comments on this.
    Thanks
    Andy,
    If the 6% is fixed with Britannia and allows transfers in I would transfer your current Abbey into and add £3600 to it also and then see what is available when it matures in December
    Keep the Faith:cool:
  • Hmm sounds like an extra option i'd not considered.

    Though I've got another savings account with Britannia and i'm keen to not have all my eggs in the one basket just in case - makes me feel a little easier.
  • whu
    whu Posts: 23,461 Forumite
    10,000 Posts Combo Breaker
    Hmm sounds like an extra option i'd not considered.

    Though I've got another savings account with Britannia and i'm keen to not have all my eggs in the one basket just in case - makes me feel a little easier.
    If you have less than £50K in total you are protected for compensation incase anything goes wrong
    Keep the Faith:cool:
  • Hi,
    Sorry one thing i forgot to add.
    The Britannia is fixed rate so can't withdraw or if i did it is 180days interest lost so i'm keen to not have everything in here just in case as it would seem a shame to lose out.
    Saving for a house deposit is the ultimate - not close yet though!
  • Anyone got any further comments on this at all?
    Thanks.
    Andy.
  • Baldur
    Baldur Posts: 6,565 Forumite
    Anyone got any further comments on this at all?
    Personally, I would transfer the Abbey ISA into the Britaania account (assuming that it permits transfers) to make the most of the 6% rate until it matures - then pay £3,600 into the best available variable rate Cash ISA on 6th April, as you appear to be concerned about having access to at least some of your funds.

    The situation could then be reassessed in December (or whenever the Britannia one matures) and the question of whether/where to transfer at that stage considered.
  • nrsql
    nrsql Posts: 1,919 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Look at the best rate you can get in April. Then look at the best rate you can get after tax outside an ISA. Take the difference over a year.
    That's the amount you could lose (or gain) by not taking out the isa. (probably max £30)

    Then you can wait until next March (or any time in between) for a better deal to come out. By not taking out the isa you are not excluding the non-transfer deals. Could work out a lot better.

    At current rates I won't be taking out a cash isa until next year.
  • OK Thanks for the suggestions. I'll give it some thought.

    I imagine the ISAs for the next tax year are not really out there yet?
    I imagine people are waiting until then to find out what the best rates are?

    Thanks.
    Andy.
  • Baldur
    Baldur Posts: 6,565 Forumite
    OK Thanks for the suggestions. I'll give it some thought.

    I imagine the ISAs for the next tax year are not really out there yet?
    I imagine people are waiting until then to find out what the best rates are?
    On past form, unless something significantly boosts the BoE rate or need of providers to attract extra funds, I suspect that the current rates are likely to drop even more going into April/May and possibly stay low for some time.
  • tracyk
    tracyk Posts: 224 Forumite
    Part of the Furniture 100 Posts Combo Breaker

    Here are my options:
    April - Put 3.6k into BRitannia - fixed till Dec09.


    Hi Andy, I'm pretty sure you won't be able to do this as that product is a closed issue & once a Britannia FRISA is withdrawn; generally speaking, even if you've subcribed to it, you can't add further funds to it.
    The current FRISA is paying 2.75% until 31.10.09.
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