Variable or Fixed

AnAlternativeView

Just curious, at the minute are you going for a good variable rate or what at least looks like now, a high paying long term fixed rate?

I am in two minds right now, tempted to go variable - rates cannot be this low forever surely?

Ta.

Lokolo

I already fixed back last year so have ok rates.

I can't fix this years ISA as I have yet to fill it all up.

Baldur

All of my Cash ISAs are currently fixed for one year (or the remainder of one year) at rates ranging from 3.75% to 6.5%, along with a 7% Regular Savings ISA for the current tax year and a small 4-year fixed rate (until April 2012) at 6.2%.

AnAlternativeView

But if you look to put money out today / invest your ISA today, there are some good (outstanding?) variable rate ISAs which are tempting me from NSI.

Lokolo

2.5% isn't great to be honest.

AnAlternativeView

Sorry - I meant away from NSI, not to them. There are 3/4 Building Socs offering 3%+ for low notice terms.

Lokolo

Oh sorry, from NS&I.

Yes I don't understand why you are thinking of NS&I? They are pretty poor....

Baldur

Manchester BS's 35-day ISA @ 3.01% (for example) would pay an extra £255 per annum on £50,000, compared with an ISA at 2.5% - whether it's worth transferring or not depends on the size of your Cash ISA 'pot' to a large extent.

AnAlternativeView

Extra money is always welcomed!! I see Chesham's and a couple of others also look favourable.

The question I am trying to ask is who is going for fixed and who variable at the minute? I might be persuaded one way or the other yet for what to do with my existing NSI Cash ISA.....

Lokolo

AnAlternativeView wrote: »

Extra money is always welcomed!! I see Chesham's and a couple of others also look favourable.

The question I am trying to ask is who is going for fixed and who variable at the minute? I might be persuaded one way or the other yet for what to do with my existing NSI Cash ISA.....

Ok right.

So you have an existing cash ISA with NS&I. I see now.

Well just remember, most fixed ISAs only allow one deposit. So if you have used your allowance for this year then great. If you have only used, for example, £500, and then you put this in a fixed ISA, you are then losing out on the other £3100 as you can't top it up.

I prefer fixing as it means I don't have to mess around all the time. But in these times I would only fix 1 year at a time.

Baldur

I would agree with Lokolo - I almost always fix unless I suspect that there are likely to be major fluctuations in interest rates. Certainly wouldn't fix for more than 12 months at the moment.

I can't see any Chesham ISA which looks attractive - both require notice (60 or 120 days) the '60' pays appalling tiered rates while the 3% offered by the '120' is equalled or bettered by instant access ISAs from Abbey & First Direct as well as the MBS 3.01% that I mentioned earlier (35 days notice) and all of the FRISAs mentioned in the best ISA post.