Looking for a fixed rate ISA that allows further deposits

tipsychick

I had the same letter from the Halifax yesterday, offering 3.5% fixed for 2 years. I'm perfectly happy for the rate to be fixed but I want instant access, so I'll be passing on that one.

I hope that isn't going to be it from the Halifax for this year. From their interest rates page, the Halifax ISA Reward appears to have been launched on 24/2/09 so fingers-crossed next weekend will see a like-for-like replacement.

alastair_h

tipsychick wrote: »

I'm perfectly happy for the rate to be fixed but I want instant access, so I'll be passing on that one.

[STRIKE]Fixed Rate is fixed for a fixed term, that's how they work.[/STRIKE]

rb10

alastair_h wrote: »

Fixed Rate is fixed for a fixed term, that's how they work.

No ... please don't post that! It only confuses people as it is completely incorrect!

Fixed rate normally means fixed term. However, some providers (e.g. Halifax, First Direct, Egg) have offered accounts that give fixed rates with instant access.

alastair_h

rb10 wrote: »

No ... please don't post that! It only confuses people as it is completely incorrect!

Fixed rate normally means fixed term. However, some providers (e.g. Halifax, First Direct, Egg) have offered accounts that give fixed rates with instant access.

I didn't know they did that, you learn something new every day. Apologies for that, please disregard above.

d712

Hello, is there any further news on any fixed rate ISAs that allow further deposits?

There is a thread on this forum that lists the best ISAs with links to click on but these links rarely specify whether or not additional deposits are allowed

Thanks

tipsychick

Well the good news is that the Halifax are replacing the Direct Reward ISA with a like-for-like product. The bad news is that the rate is fixed at 2.6% rather than 3% this time round.

http://www.halifax.co.uk/savings/isa-direct-reward.asp

I've spoken to them this morning and they are allowing transfers-in from the current Direct Reward 3% ISA. If yours is maturing shortly, they advised to call on the day and they'll request an internal transfer, which will take a couple of days but the interest will be backdated, so the transition should be seamless.

Given that FD are now restricting new applications to existing current account holders, for the sake of 0.15%, this may be the simplest fixed rate instant access option. Shame about the loss in rate though.

Baldur

tipsychick wrote: »

The bad news is that the rate is fixed at 2.6% rather than 3% this time round.

The worse news is that the rate isn't fixed at all, it's clearly stated that it's variable:

A great variable tax free interest rate of 2.60% AER with easy access to your savings.

rb10

Baldur wrote: »

The worse news is that the rate isn't fixed at all, it's clearly stated that it's variable:

I think that's a good thing.

I trust Halifax not to change the rate in any way other than in line with the BOE base rate, and as that can only go in one direction from here, I think that a variable rate with Halifax (starting at 2.6%) is better than a fixed rate of 2.6% with Halifax.

By the way, this account is due to be available until May.

Baldur

rb10 wrote: »

I think that's a good thing.

I trust Halifax not to change the rate in any way other than in line with the BOE base rate, and as that can only go in one direction from here, I think that a variable rate with Halifax (starting at 2.6%) is better than a fixed rate of 2.6% with Halifax.

By the way, this account is due to be available until May.

I tend to agree, but not good news for someone who starts a thread looking for a fixed rate ISA....;)

beecher2

My Halifax ISA matured last week so I've gone with the 2.6% rate - I also think the variable rate can only go up, but it is something to keep an eye on.