Investing £3600 in cash ISA in 09/10

colgor

As interest rates are as low as they can get are we reasonably safe to predict that the variable rate best buys can only increase later in the tax year? The fixed rate ISAs are a little worse rate but then stuck with them?

Also, I have a fixed rate non ISA account at about 6% until July so no point in switching to an ISA until then, particularly as rates seem likely to only raise not fall, should there be any movement?

Opinions appreciated.

tonygee_3

Wouldnt bank on VRs going up,infact wont be suprised if they are lowered once everyone takes them up.

Baldur

colgor wrote: »

As interest rates are as low as they can get are we reasonably safe to predict that the variable rate best buys can only increase later in the tax year? The fixed rate ISAs are a little worse rate but then stuck with them?

Cash ISA rates (apart from some notable exceptions) are already well above BoE base rate and, unless particular accounts are linked to the BoE rate, variable-rate product providers are not obliged to increase or decrease their rates in line with it.

The later you have left it, as far as fixed-rate ISAs are concerned, the poorer the rates that are available - I transferred to a 3.75% fixed-rate in March and pre-arranged my 2009/10 Regular Saver ISA at a fixed rate of 7%.