Wanting to ditch my ISA and fix away for a year..

bailey_uk

Hey folks, I have a Furness Cash ISA 90 which will have £9100 in it by April 2011

The current interest I am getting is 2.04% on anything over £9001.

Im going to stick my neck out and say that from April this year, I want to lock that whole amount away for 1 year from April 2011.

Ive been looking at interest rates for Fixed 1 Year Bonds and they look more appealing than leaving in my ISA.

However am I right in thinking that the rates I am looking at are before tax?

Can anyone suggest anything else that may suit my situation?

Thanks in advance

JB

lisyloo

Yes, they will be quoted before tax.

Why don't you find a 1 year fixed rate ISA and transfer into that?

McKneff

lisyloo wrote: »

Yes, they will be quoted before tax.

Why don't you find a 1 year fixed rate ISA and transfer into that?

Seems the obvious thing to do if youre a tax payer.

bigfreddiel

bailey_uk wrote: »

Hey folks, I have a Furness Cash ISA 90 which will have £9100 in it by April 2011

The current interest I am getting is 2.04% on anything over £9001.

Im going to stick my neck out and say that from April this year, I want to lock that whole amount away for 1 year from April 2011.

Ive been looking at interest rates for Fixed 1 Year Bonds and they look more appealing than leaving in my ISA.

However am I right in thinking that the rates I am looking at are before tax?

Can anyone suggest anything else that may suit my situation?

Thanks in advance

JB

Do NOT withdraw from your ISA - TRANSFER to a fixed rate ISA, now is the time new rates will be announced and they will be spectacular now that RPI is 5.1% - you should find 1 yr or 2 yr period quite easily.

fj

bailey_uk

Thanks yeah, a fixed rate ISA seems to be the way to go.

It wont be until April that I do it, so going to keep an eye on who is offering what.

In general though, is this a good time to be doing such a thing? As interest rates have been so low for such a long period of time, is it fair to say that in the next 2 months there will be change (due to the rising inflation?)

JB