BM ISA maturing - advice needed please

martyp

Hi all,
Last year I decided to invest in an ISA for the first time after just using savings accounts before. I got ther 4.25% BM 1 year fixed rate ISA and today received a letter from them saying it matures on 28th January.
Their best offer is a 1 Year Fixed Rate ISA with a guaranteed fixed rate of 2.50% tax free/AER for annual interest and 2.47% tax free/2.50% AER for monthly interest for the duration of the 1 year term.
It looks like the Bank of Cyprus account is the best deal as a 1 year fixed rate ISA at the moment? As the amount saved is just over £1500 I know that tiny amounts different in interest won't seem like a huge benefit, like £3 or something over the year...
What would people recommend? I like the idea of another 1 year fixed rate deal and I didn't need to withdraw at all for the whole duration and hopefully won't need to again this coming year...

alastair_h

The Bank of Cyprus at 3.33% for 1 year seems to be around the best paying account, HOWEVER it is not covered by the UK compensation scheme. Personally i'd steer clear of this (as I was an ex Icesave ISA owner & lucky to get my money back), even though it says it covers the first £90K, it can take some time to get your money back. see link below.
http://www.moneysavingexpert.com/savings/best-cash-isa

If you can tie the money up for a year perhaps Julian Hodge bank at 3.25% for 1 year would be a better option for you?
http://www.julianhodgebank.com/personal/savings_isas_cash.asp (2nd link up from bottom of the page).

Or see best buys page.
http://forums.moneysavingexpert.com/showthread.html?t=401374

martyp

Excellent, much appreciated.
The Julian Hodge one looks like a good one definitely. I thankfully had no need to withdraw on the money in my ISA last year and hope to be able to do the same again for another year. I can't find out on their site though what the 'exit fee' is that would be charged for withdrawals within the 1 year period. Do you know at all? I was also trying to work out how the account would be managed?

many thanks

alastair_h

It's a fixed rate ISA, fixed term is 1 year etc. It's managed by post, you usually get a couple of letters a year advising of any changes. If you had to get your hand on the money in case of emergency. See page 10 - terms available on request.
http://www.julianhodgebank.com/personal/forms/JHB-TC.pdf

"Where 3 months notice fee is given, then no exit fee is charged"

If early access is likely then perhaps a variable rate ISA would be better.

martyp

I just noticed a problem for me with the Julian Hodge offer, that they have a minimum investment of £3600 but I have less than half that amount to invest...
I'll keep an eye on the latest offers and see if anything else comes up with a lower minimum amount.

alastair_h

Think minimum you can transfer in is £3000, check the best buys page.