What would you do?

Gordon_the_Moron

Considering my options and would like to know people's thoughts on this.

I've got most of my existing ISA money in Newcastle Building Society with a fixed rate for 5 years, that is staying where it is.

This year's allowance is in Saffron Building Society in the 7% regular saver ISA which matures next week.

Considering what to do with it when it matures and next year's allowance.

I am considering either ramming the lot in Nationwide's 4.4% 3 year deal (fill my 2010/2011 allowance on April 6th in the Saffron Account then transfer the lot over) I don't know what the rates will do over 3 years but I can't see rates going up much in under a year so is the average best rate over the next 3 years likely to be greater than 4.4%, I doubt it, they can't go down much but not sure I see huge jumps either.

Alternatively I am considering Newcastle BS Balance Builder ISA (http://www.newcastle.co.uk/savings/balancebuilderisa) only 0.1% below the A&L/Santander offering and I can transfer this year's money to it too. Whilst I'm drip feeding next year's allowance in it will be sat in another account earning taxable interest.

Any other ideas?

Gordon_the_Moron

Gordon_the_Moron wrote: »

Considering my options and would like to know people's thoughts on this.

I've got most of my existing ISA money in Newcastle Building Society with a fixed rate for 5 years, that is staying where it is.

This year's allowance is in Saffron Building Society in the 7% regular saver ISA which matures next week.

Considering what to do with it when it matures and next year's allowance.

I am considering either ramming the lot in Nationwide's 4.4% 3 year deal (fill my 2010/2011 allowance on April 6th in the Saffron Account then transfer the lot over) I don't know what the rates will do over 3 years but I can't see rates going up much in under a year so is the average best rate over the next 3 years likely to be greater than 4.4%, I doubt it, they can't go down much but not sure I see huge jumps either.

Alternatively I am considering Newcastle BS Balance Builder ISA (http://www.newcastle.co.uk/savings/balancebuilderisa) only 0.1% below the A&L/Santander offering and I can transfer this year's money to it too. Whilst I'm drip feeding next year's allowance in it will be sat in another account earning taxable interest.

Any other ideas?

Anyone??????

Mickygg

I personally chose to go with Nationwide for my previous years ISA's, but for smaller amounts, I would be tempted to keep these more readily available. Because I have tied up my money for 3 years, any extra I hope I can put away I will be looking to keep locked away only for up to a year, so if interest rates rise I haven't locked everything away at a lower rate.

I agree with you - can't see rates going up by much, if any, in the next year. I was reading a column where all the 'experts' in the economists world predicted what they thought the interest rates would be at the end of Dec 2011, most said about 2%, with no-one going higher than 3%. I admit no-one knows, but if you keep some cash more easily accessible as you have tied up your main ISA for 5 years, then at least you wont be locked in for all your money.

Tough call - murphys law often strikes. I am in a similar situation what to do with this years ISA - but as I say above I'll be keeping it more easily available (when I can save it up), and probably go for A&L if available still or Barclays. I wont be locking away for 3 years in Nationwide, despite this being the easiest option for me.

Gordon_the_Moron

I have not locked most of my money away for 5 years, the Newcastle BS account pays 5% for 5 years (about 6-9 months into it now) but I can transfer/withdraw without penalty by giving 30 days notice, it will take something pretty impressive to make me take my money away from that account though.

Mickygg

Oh well that changes things then, I would stick it away with Nationwide. I like a mix of easily accessible and fixed rates.