Coventry 3.25% ISA - yes or no?

socrates

Spotted this ISA on here - it does not seem to appear on any of the Best Buy Tables.

Seems very easy to set up - applied online 2 days ago, have the paperwork and ready to go.

Is there a better option for new money?

Nathan_Barley_2

Santander told me yesterday about a 3.5% rate, but you've got to keep it in for two years. That said, is it likely that rates will go up next April? Is it likely that other ISAs will be offering, say, 4%, next year, and you'll regret being stuck with 3.5%? I don't know the answer, so this isn't a rhetorical question.

Mickygg

I agree - for the sake of 0.25% on £5,100 I would not fix for 2 years. I would only fix for 2/3 years or more if you can get over 4% which a month or so ago you could, however you need to fix for 4 years now just to get 4.25%.

This Coventry one is on Kazza's list and people have had good things to say about it. I was going to use this one, but went for A&L 3.2% instead.

2010

socrates wrote: »

Spotted this ISA on here - it does not seem to appear on any of the Best Buy Tables.

Seems very easy to set up - applied online 2 days ago, have the paperwork and ready to go.

Is there a better option for new money?

http://www.coventrybuildingsociety.co.uk/savings/productfeatures.aspx?ProdCode=FI1Y3

This is virtually a 1 year fix at 3.25%, matures end of May next year.
Coventry are one of the better B/S and after searching about,this is the one I`m going for.
A fixed rate with no bonuses and no catches and in the past the Cov. always come up with another good offer on maturity to keep your dough with them.

socrates

2010 wrote: »

http://www.coventrybuildingsociety.co.uk/savings/productfeatures.aspx?ProdCode=FI1Y3

This is virtually a 1 year fix at 3.25%, matures end of May next year.
Coventry are one of the better B/S and after searching about,this is the one I`m going for.
A fixed rate with no bonuses and no catches and in the past the Cov. always come up with another good offer on maturity to keep your dough with them.

That settles it!

Cheque in the post

2010

Already have access to the Cov. online and just applied and accepted within a minute.:D

New ISA account should show up online shortly and initial payment can then be made by BACS,cheque or transfer from another Cov. account.

Job done in less than 2 minutes. :T

Batchy

they can do this over barclays golden cause in Q4 at the latest there will be interest raises... you will be stuck with fixed while everyone else benefits from rates going up. The penalty is far too hefty to even consider... it is pretty much fixed for the 50 it will cost you to take it out.

2010

Interest rates going up?

---

tell me about it.

The next government, whoever, will really put the squeeze on everyone and make them cry.

BoE will carry on as instructed by the PM and hold at .5% for a couple of years.

It`s all downhill from 7th May 2010.

Batchy

2010 wrote: »

BoE will carry on as instructed by the PM and hold at .5% for a couple of years.

Couple of years? are you sure? inflation is 4.4% at the moment, you don't think they will react?

Is stopping quantitive easing effectively rising the rates temporarily?

2010

Batchy

I`m no expert but when the so called are interviewed on the TV according to them this rise is just a blip and expected to drop.
Having said that,the banks don`t seem to take the official BR into consideration when they fix their savings and mortgage rates.
The BoE rate is what the banks can borrow at,you can`t get that rate.

Also,despite the BoE being indepenent to set rates,you can`t tell me Brown hasn`t been on the blower "advising" them to stay at .5%

MarkyMarkD

2010 wrote: »

The BoE rate is what the banks can borrow at,you can`t get that rate.

Er, no it's not. Or they wouldn't be paying 3%+ on savings accounts, and they'd all be making enormous profits.