Juicy Worm ISA Business Model - Who Falls for It ?

Mikeyorks

Spivved1987 wrote: »

I am in the hassle time of shifting previous years' ISAs

So - the secret is to fix your cash ISAs for the maximum period at a time when interest rates are good. That way you avoid the transfer hassle ...... and you can still (just) have ISAs running at 6%+.

But knowing when is the optimum time to fix is the bit that needs a crystal ball? I tend to work on the premise that anything above 5.5% (for 4 years) is about right. As if you wait for the absolute peak - you will miss it.

FLAPJACK

Thanks Dunstonh.

Agree with you Mikeyorks, last year I though the same as the OP, I drew them all together into one account..lot easier to deal with this year.

On the question of rates I reckon you are not far wrong in what you say re 5.5%!. The days of 7%+ are a while away yet me thinks, both in ISA's and Fixed rate bonds.

Stompa

Spivved1987 wrote: »

Given the work this entails for both us and the providers, does it really make sense for this business model to be so prevalent?

I agree that it's a pain that you have to transfer Cash ISAs to ensure the best rates, but is really that much work? It can't have taken me more than 10 minutes this year.

Spivved1987

Stompa, my original post was an invitation to slam the providers for this cynical business model (it obviously exists in other areas than ISAs) of 'introductory rates', 'bonus rates', 'loyalty bonuses' etc. It's the same cynicism which sees products with almost identical names ('Internet Extra',' Web Extra' etc) paying very different rates. It was not a call for people to come on and in effect defend the practices by saying 'it's easy, it only took me ten minutes' etc etc !