1 year fixed rate ISA: getting the timing right. Go now or wait?

Nine_Lives

The key here is we'll be looking to move out & get our own place in 2013. Now this doesn't mean Jan 1st 2013, but it's 2013.
We're looking at a hard saving 2012 & i'd like to have my money work as hard as possible. Even if i'm just bagging an extra £50 by locking it up for 1yr -vs- going instant access. Every little counts.

Currently i have just over £17k in a Halifax ISA. This, according to the interest information in my online account, is earning 3%. IIRC i get/got an extra 0.2% for having a Halifax current account making it 3.2%. I can't find this on the Halifax website though, so perhaps they've pulled it..? I'm positive i was getting 3.2% though.


Looking at the 1yr fixed accounts, 3.25% is your max right now. Not sure what this equates to over a year as i've a habit of doing the maths wrong (Is the answer £544 -vs- £552.50 on £17k?).
I remember for the past 2 years, ISAs (at least instant access) have been a bit tastier around the back end of March.

I've never looked at 1yr fixed though. Do they generally spike around this time? When does the interest wars begin? End of March, start of March? February perhaps?

The March/April divide will really be the latest i can possibly leave any subscription to a fixed account.

opinions4u

You'll get the 0.2% until your offer expires (e.g. 12 months from when you first registered for the 0.2%, or 12 month after it was renewed, or 12 months after the first account you opened expires).

As for calling 12 month FRISA rates, it's a toughie. The better FRISA rates in the last couple of years have been around the 2 and 4 year terms, with many easy access bonus accounts having better or similar rates to the 12 month FRISAs on the market.

Personally I'd wait until tax year end as that's when the best offers are around. If it was the choice between a 3.2% easy access ISA and a 3.5% 1 year FRISA I'd probably go for the easy access though. Just a little bit more convenient if the world changes.

Nine_Lives

opinions4u wrote: »

You'll get the 0.2% until your offer expires (e.g. 12 months from when you first registered for the 0.2%, or 12 month after it was renewed, or 12 months after the first account you opened expires).

As for calling 12 month FRISA rates, it's a toughie. The better FRISA rates in the last couple of years have been around the 2 and 4 year terms, with many easy access bonus accounts having better or similar rates to the 12 month FRISAs on the market.

Personally I'd wait until tax year end as that's when the best offers are around. If it was the choice between a 3.2% easy access ISA and a 3.5% 1 year FRISA I'd probably go for the easy access though. Just a little bit more convenient if the world changes.

True, though i no longer have 2 years to spare. If i had known way back when, the exact year we'd be moving out, then i could've locked my money up some time ago, but there you go.

Also, i wont need to touch 17k for a year & that's as close to a cert as you can get. I have another 13k elsewhere.