best ISA right now

oops_a_daisy

Hi - was wondering if anybody knows the best ISA to invest in right now ( £2000 ) I was away for a few days and was paid some money that I was owed and was going to open a A & L one when I got back but they have withdrawn the bonus :mad:
Im not sure if the Halifax one is now paying out highest at 5%. If anybody knows of a better deal please will you reply.

Many thanks

OOPS

ReportInvestor

I thought that Halifax had dropped to 4.75%.

Unless you wanted a fixed rate and had £3K?

equitydealer

Bradford and Bingley pay 5% on its variable ISA and you can get the interest monthly if you like

Alternatively B&B give 5.1% fixed for one year if you think interest rates will drop. Personally I believe the next move by the MPC will be 0.25% up at the end of this year.

muddyfox470

go to nsandi.com

they have a direct isa paying 5.05% and it is guaranteed to be 0.55% above the bank of england base rate for one year!

altho u cannot transfer existing isas into it.

ian

YorkshireBoy

muddyfox470 wrote:

...it is guaranteed to be 0.55% above the bank of england base rate for one year!

The guarantee lasts 2 years (until 5th April 2008).

isasmurf

Best ISAs for £2000 deposit

oops_a_daisy

thanks for your replies - Im going to get this sorted out tonight before any more changes

Debt_Free_Chick

oops_a_daisy wrote:

thanks for your replies - Im going to get this sorted out tonight before any more changes

Just bear in mind that unless you have a guaranteed rate, the rate can fall in the future. Note that some bonus rates are tied to the base rate e.g. base rate +0.5%, so if the base rate falls, the total rate falls, but you still get the bonus rate on top.

muddyfox470

however some ISAs have guaranteed rates other have short life bonuses, i.e. 0.5% for 6 months for example.

national counties and nsandi give a guaranteed rate above the base rate for the term of the account (1 year for national counties, 2 years for nsandi). this means that if the BoE rate rises, the ISA rates must go inline too. however if the BoE rate falls the interest rate on the account MAY fall, however the providers don't have to reduce the rates (although they probably would!).


however both of these accounts may be withdrawn at any time - as they are limited editions!

you then have the fixed rate ISA's which have one rate for the term of the ISA, and wont change during that term no matter what happens to the BoE base rate.

Ian