isa transfer to a fixed rate account

foxyluke

i have an isa at the moment which is earning about 3%. there is about £11000 in it. i have noticed that a lot of fixed rate accounts are paying high rates such as 5% for three years compared to the poor rates of isas.

is it worth moving my money into a fixed rate account or not??

Mini_Bear

Remember you get the isa interest gross and will get the fixed rate interest net. so it depends if you are a higher rate taxpayer.
BUT when interest rates do rise, would it not be best to have several yrs of isas you can transfer into a good rate?
remember once you take out the isa cash you cannot put it back in on deposit for previous yrs!
i personally hav sat on isa cash payin paultry amounts but was then able to lock in five yrs at 6.15% for a couple of yrs. so its costed in in the end!
Good luck whatever you decide!

Reaper

Have you looked at fixed rate ISAs?
See: http://forums.moneysavingexpert.com/showthread.html?t=401374

You say you can get 5% on a 3 year fix but if you look at that thread you can get a 4.2% with Principality BS Direct Fixed Rate ISA (issue 54) on a 3 year fix which works out better even for a basic rate tax payer.

Have a read, that is only one of many options.

alared

foxyluke wrote: »

i have an isa at the moment which is earning about 3%. there is about £11000 in it. i have noticed that a lot of fixed rate accounts are paying high rates such as 5% for three years compared to the poor rates of isas.
is it worth moving my money into a fixed rate account or not??

Transfer it here for 4.2% fixed for 3 years and keep it tax free.
This would work out at 5.25% before tax,which is better than any fixed rate account around at the moment,even a 5 year one!

http://www.principality.co.uk/default.aspx?page=1563