New Financial year, anyone recommend the best isa?

RobCrin

Hey all, im new!

Now the new financial year has rolled around I want to open my new isa for the year. I am just wondering if any of you have some that you would recommend?

Also my current one bank (Bradford and Bingley) has a variable 5% or a fixed 5.1%, any comments on which one you would choose…

Thanks!

mary

Welcome.

I'd recommend Alliance & Leicester 5.2% fixed until April 2007.


B & B 5.1% fixed for how long?
B & B 5%, variable, can go up/down.

If I had to chose from those two I'd take the 5.1%, but depends on timing.

RobCrin

The fixed is for a year. I was trying to think if the rates are going to go up or down this year, but it seems pretty stagnant at the moment

zzzLazyDaisy

A one year fix around 5% is starting to look quite common. The Britannia has an ISA fixed at 5% for a year, and the Halifax has a 5% fix. You can transfer in previous years' allowances.

I'm looking to transfer all my previous years allowances to one home (atm they are in half a dozen different places!).

Anyone know of a better home than A&L 5.2%? I'm happy to fix for a year - or more if conditions are right.

glenni_2

I don't think the Alliance & Leicester ISA is fixed. Its 5.2% Variable with a bonus of 0.70% until April 2007 but should the base rate drop then I imagine A&L's interest rate will too.

mary

Yes, you're right

david78

Presumably all the providers of these 1 year fixed 5% deals think that the variable rates are going to go higher. Otherwise they wouldn't be selling them.

mars_2

One thing to watch is the A&L Is 5.2% with a 0.7% bonus, the idea was to catch people who hadnt used up last years allowance and new people for this year it could easily drop that a cpl of % soon

Without the bonus next year you could be looking at around 4.3% and with any drop in interst rates it could go lower.

with the fixed rate most places ask for the full balance of £3000 straight off.

equitydealer

Trying to second guess banks/building societies on rate rises/drops is difficult but I would go for the B&B 5% variable for the following reasons

1) Their 5.1% fixed rate ISA indicates that they aim to keep their 5% variable ISA at that rate for several months at least

2) B&B customer services (esavings) is excellent

3) I believe interest rates will move up by 0.25% at the end of this year to counter rising house prices and inflation

4) The variable rate ISA allows you to switch to another ISA provider should a better deal be available. Good if you are a true rate tart