Nationwide FRISA Maturing...

Ems112

I have a FRISA with Nationwide which is due to mature on 28th October.

I have two options (I think!):

1. I opt for another FRisa for 2 yrs at 3.5% with Nationwide
2. Transfer the whole balance of the FRisa into my Natwest E-Isa (opened Feb this year) which is therefore currently attracting 3.2% interest.

Any ideas on which i go for?

I dont really like the idea of tieing up the money for more than 2/3 years as although i do not need it in the immediate future who knows what the future holds - to fix for 5 years is a long time although obviously they attract better rates of interest!

Any ideas on what I should do?!

thanks

Baldur

See http://forums.moneysavingexpert.com/showpost.html?p=4603369&postcount=1

Chelsea are doing 3.5% fixed until 22/10/10 or Julian Hodge Bank is offering 3.25% fixed for one year. Rates of up to 3.75% on a few two year fixes.

rb10

There are more than just two options...

If it's a 2 year fix you want, you can get 3.85% with Saga (if you are aged 50 or over and have £30k+), or 3.75% with Halifax.

Or, there are one year fixes that pay more than your Natwest ISA - see here.

So it really depends on how much money you potentially want access to. Remember that you can split what's coming out of Nationwide - so put as much as you think you could possibly need in the Natwest ISA, and then get a higher rate with the rest in a fixed account.

Whatever you decide to go for, remember that ISA transfers can take some time, so get your transfer forms in asap, ticking the box to say that the transfer is not to take place until there are no penalties for doing so (i.e. the Nationwide FRISA has matured). If there isn't a space on the form for this, just write it on prominently.

Ems112

Unfortunately im only 25 so dont qualify for the Saga Isa!

I suppose the real question is am i better off putting in my Natwest Isa and wait until a better fixed rate isa comes along within the next few months or should i just bite the bullet and re-fix straight away? I have around £8k in the Natwest Isa which i would obviously have access to if i needed it and the Nationwide Isa holds around £4k.

Any further thoughts?

Baldur

What makes you think that better fixed rates are likely in the next few months?

Personally, I wouldn't fix for more than a year at the moment - but that's just my opinion.

Ems112

Nothing makes me think that, im always slightly nervous that as soon as i fix that something better will come along thats all.... afraid to commit and make a mistake...

Oh what to do!

EdGasket

ISA rates are pathetic. You are better off with a stocks and shares ISA right now. Get some index linked gilts, high yield shares, and corporate bond funds. I've made 5% in 2 months already !

The_Enforcer

You mention you have £8k in your E-Isa, opened prior to 15th May 2009, which means your rate is 3% and not 3.2%. They dropped the rate in September. However, on balances of £10k+ the rate rises to 3.26% (which is what I get), so this might be worth bearing in mind.

alared

I don`t usually fix for more than 1year but with ISA rates so crap and likely to stay that way (the banks and B/Soc. seem to have targeted tax free rates), I`ve gone for a three year fix at 4.2% with the Principality B/S issue 54.

pbw

alared wrote: »

I don`t usually fix for more than 1year but with ISA rates so crap and likely to stay that way (the banks and B/Soc. seem to have targeted tax free rates), I`ve gone for a three year fix at 4.2% with the Principality B/S issue 54.

i've just fixed with nationwide's 5 yr FR isa @4.5%. best rate at the moment. i think there is little point thinking about what might happen to interest rates and just to go with the highest rate on the day.

i have two isa accounts;

4 yr halifax isa of 3k paying 6%
5yr nationwide isaa of 6k paying 4.5%

alared

pbw wrote: »

i've just fixed with nationwide's 5 yr FR isa @4.5%. best rate at the moment.

You`ve fixed for an extra two years for only .3% compared to Principality`s 3 year.

Top rate for a 5 year at the moment is 4.6% with Leeds B/S.