Query re best bet

alfista

I'm looking at cash ISA's for my son and have a query : if he opens an a/c with West Brom (flexible) he gets 3.07% interest (after a year), if he opens an a/c with Northern Rock (one year fixed) he gets 3.3% interest (after a year).

So - why on earth would he go for the West Brom option ?

ses6jwg

Two reasons.

1) The West Brom is instant access with penalty so if he needs the money for a car/ sex change he can draw it out with penalty.

2) If interest rates rise in the next 12 months he is not tied in at a rate which may not look so competitive if there is an interest rate rise.

bigfreddiel

ses6jwg wrote: »

Two reasons.

2) If interest rates rise in the next 12 months he is not tied in at a rate which may not look so competitive if there is an interest rate rise.

let me repeat myself -INTEREST RATES are NOT GOING UP - NOT NOW or ANYTIME SOON

okay is that loud enough

go for a fixed rate of at least 5% - until those turn up go for the best instant access rate af at least 3.1%

simples

fj