Looking for a fixed rate ISA that allows further deposits

Mikeyorks

rb10 wrote: »

I don't think the Reward would have been given as an option on your letter(?) so the guarantee of giving you the highest rate wouldn't apply.
!

That jogs the failing memory a modicum ...... it wasn't. I had to manually insert it (I think it had just become available) on the letter. As the pre-printed options offered weren't in the slightest tempting ....... and I was going to transfer the cash to my S&S ISA, had the 3% not come along.

avalanche_3

If you don't mind fixing for a longer term try the LEEDS BS 5YR FIXED RATE ISA.

This account pays 4.6% and allows withdrawels of up to 25% of the sum invested without any notice or loss of interest. Withrawels above the 25% lose 180 days interest.

You can transfer in from any existing Isa's with other Banks.

avalanche_3

Have a look on the 'Best Cash ISA'S Available' list on this forum for full details of all the best ISA's available at the moment.

martinman3

The Skipton BS 3yr fixed rate ISA at 3.75% once opened allows you to make contributions (or transfers in) for the 2010/2011 tax year from 01/04/10 until 30/04/10.
http://www.skipton.co.uk/savings_and_investments/isas/fixed_rate_cash_isa/?utm_source=homepage&utm_medium=banner&utm_campaign=fxRateCashIsaFeb2010_MainBanner

The minimum transfer in of £15000 is rather high though.

rb10

Mikeyorks wrote: »

If they follow what they did last year they write a month in advance and telling you what is available then. But with no guarantee that the same offers will still be on the table at maturity date!

I can confirm that Halifax's ISA Rate Promise states that if you roll over from one Fixed Rate ISA to another, you are guaranteed to get the highest rate out of:

• The rate on the date your maturity letter was issued; or
• The rate on the date when the account rolls over

Note that this only applies when transferring from one Fixed Rate ISA to another - so if they do another ISA Direct Reward (or similar) and you want to transfer to that, then you won't be covered by the guarantee.

Also bear in mind that you won't get a maturity letter for any ISA Direct Rewards opened during 2009, as these accounts don't 'mature' as such, but just become a standard ISA Saver Direct (0.5% AER). These need to be treated separately.

N.B. This is only half of the Rate Promise - the other half covers people opening new Fixed Rate ISAs, and transferring other existing ISAs into those. This states that you will get the higher of the rate that applies when the account was opened and the rate that applies on the date when the final (or only) transfer was received by Halifax, provided that this is within 60 days of the account being opened).

Mikeyorks

rb10 wrote: »

Also bear in mind that you won't get a maturity letter for any ISA Direct Rewards opened during 2009, as these accounts don't 'mature' as such, but just become a standard ISA Saver Direct (0.5% AER).

That's useful, thanks, as I don't think I'd appreciated that. However as the Direct Rewards 'mature' in the midst of a couple of older fixed rates I'll be looking to see if I can aggregate them all into a combined fixed rate for 1, or possibly 2, years.

kev2009

Hi guys,

Im in the same boat...

I moved my isa to teh Halifax ISA reward at 3% for 1 year and mins is due to mature betgining of march. I recieved a letter saying that it was to mature in march and tell me hwo good there fixed rate isa was at 3.5% and suggesting that if i want to do it, i have t do it by 5th march.

Now, i cant' decide what to do.. I was hopign halifax woudl do another reward scheme and i coudl transfer into that oen and benefit foprm the fixed rate and being able to add to it but no signs yet.

So what do i do... lookign aroudn any instant access accounts at best seem to offer 2.5% - 2.75%..... whic isnt' terrific and i'm not a huge fan of alliance and leicster or the group.

As an alternative, i thougth perhaps i coudl do this..
Put the Halifax ISa Reward nto there 2 year fixed rate at 3.5% and then come April, open a new Cash ISA with someone (not sure who yet) and pay in to that for 2 years.

Questio is -

Wil my fixed rate ISA continue to earn interest if i open up another Cash ISA as normally i get a letter saying i have subscribed to the isa thsi tax year and stuff..

plus at the end of the 2 year, i may put it into a nromal instant access acoutn if interest rates have picked up by then and cou;d i combign the 2 cash isas into 1 then or not?

i honestly nto sure what to do for the best.. I nw some places are offering over 4% for fixed rate terms of 4-5yeas but i just don't knwo what interest rates will be then.. and knowing my luck, i'll end up getitng say 4.5% and interest rates will shootup to lie 7% and i'll be stuck with 4.5%... so i dont want to fix it for too long...

My idea last year was everyeon was sayig they reckon a year to get out of recession so i thougth right, fit it for a year but it seemsoverall they have come down and yo now only get higher rate by fixing for longer periods..

What do you guys reckon??

Thanks!

Baldur

kev2009 wrote: »

Wil my fixed rate ISA continue to earn interest if i open up another Cash ISA as normally i get a letter saying i have subscribed to the isa thsi tax year and stuff.

Of course it will, The transfer of your previous tax years' funds has nothing to do with your 2010/11 ISA allowance, you can subscribe it to whichever provider you choose.

plus at the end of the 2 year, i may put it into a nromal instant access acoutn if interest rates have picked up by then and cou;d i combign the 2 cash isas into 1 then or not?

Yes.

kev2009

Hi,

Thansk for your reply.

So if I understand thsi correctly.

I could put my current isa (halifax reward) into a 2 year halifax isa fixed rate at 3.5% as it is now and I will not add anyhting to it for 2 yers and it will make the interest at 3.5% each year for 2 years.

i can then open up another ISA with someone else such as FirestDirect who are paying 2.75% until Aug 2011 and then obviously look to move it soemowhere else come August 2011 and after 2 ywears, i could combine the 2 ISAs into one.

This sounds too good to be true

hey just noticed somethign when i was looking around - doesn't affect me as i have a fair way to go until i reach these figures) but maybe useful for someoen else.

I understand that each financial institution is protected upto 50k whcih includes ALL accounts with that finanical institution. So if liek me you were thikig right put my ISA with a totalyl different bank know your money is ssafe until you get to 50k, I noticed one strange thing. on http://www.uswitch.com/savings-isa/results/ there seems to be a lot of them saying the max investment is £43,200. is this true? i checked out the nationwide one for example and then went to nationwide website and it doesnt' say anythign about a max investment.

As i say, im just curious as i got a long way to go before thsi will affect me and who knows maybe the 50k protection limits wil be raise by then.

Thanks!

kevin

Baldur

kev2009 wrote: »

I could put my current isa (halifax reward) into a 2 year halifax isa fixed rate at 3.5% as it is now and I will not add anyhting to it for 2 yers and it will make the interest at 3.5% each year for 2 years.

Correct - assuming that Halifax permit in-house transfers (some ISA providers do not).

i can then open up another ISA with someone else such as FirestDirect who are paying 2.75% until Aug 2011 and then obviously look to move it soemowhere else come August 2011 and after 2 ywears, i could combine the 2 ISAs into one.

Correct.

...there seems to be a lot of them saying the max investment is £43,200. is this true? i checked out the nationwide one for example and then went to nationwide website and it doesnt' say anythign about a max investment.

That's simply looking at an estimated maximum value that someone may have accumulated in Cash ISAs since the scheme started in 1999 - an incorrect assumption, since those who have held the maximum in Cash ISAs and their predecessor, the TESSA, could well have Cash ISA funds significantly in excess of £50,000.