Isn't it better to put this years ISA allowance in a fixed isa?

Apathy

I've been looking at the 3-4 year fixed term isa's. Wouldn't it be a good gamble to put £5340 in one of these 4-4.5% isas. I mean what are the chances of a transferable being in the 4-4.5% range in that timeframe? Also you can add amounts and transfer additonal forthcoming years isas within the next 3-4 years? Otherwise just look to open another isa with the best rate available....am i missing something here?

(p.s i wouldn't need to withdraw in any case)

StevieJ

I agree, but if you are willing to go 5 years you can have 5%.

BM Savings have also launched two new 5 year fixed rate Cash ISAs, offering a fixed tax free interest rate of 5.00% AER. For both the monthly and yearly options, you can start saving with a minimum deposit of just £500 up to £5,340 in the 2011/2012 tax year. As well as transferring existing cash ISA allowances to this account.

http://www.bmsavings.co.uk/about/news/19/new-isa-extra-%28issue-2%29-and-fixed-rate-isas-launched-for-the-new-tax-year.aspx?WT.ac=BMHOMELN19

blueberrypie

Apathy wrote: »

I've been looking at the 3-4 year fixed term isa's. Wouldn't it be a good gamble to put £5340 in one of these 4-4.5% isas. I mean what are the chances of a transferable being in the 4-4.5% range in that timeframe?

You can find people saying it will and people saying it won't. As you say, it's a gamble. How good a gamble you think it is will be one factor you take into consideration - whether you want to tie up your funds for that long will be another.

Also you can add amounts and transfer additonal forthcoming years isas within the next 3-4 years?

In most cases, a fixed-rate ISA means you make one lump sum deposit and you can't add anything further. However Lloyds does have at least one fixed-rate ISA on offer at the minute which does allow further contributions up until the maturity date of the fixed-rate.