What time of year to invest in a cash isa

Looter

Hi, I normally invest the full cash ISA limit on 6 Apr each year to maximise interest, but interest rates seem to improve during the year. I'm considering holding back for a couple of months next tax year to hopefully get a better rate, would this be advisable or would it not be worth it with the amount of interest lost due to not investing earlier?

sheslookinhot

Take out the ISA as soon as possible, you can always transfer if a better rate comes on the market.

bigfreddiel

Looter wrote: »

Hi, I normally invest the full cash ISA limit on 6 Apr each year to maximise interest, but interest rates seem to improve during the year. I'm considering holding back for a couple of months next tax year to hopefully get a better rate, would this be advisable or would it not be worth it with the amount of interest lost due to not investing earlier?

For each month you hold back for something better you're losing interest (obviously) so have you worked that out how much more interest you need for each month you delay?

I thought not -basically you need .005% more for each month you wait for a better rate.

Or to put it another way, say you can get 3% in April, then in May you must find 3.5%, June you need 4%, July 4.5% and so on - waiting is a mugs game - don't do it - and remember - base rate will still be 0.5% in Jan 2013.

cheers

fj

Nine_Lives

Looter wrote: »

Hi, I normally invest the full cash ISA limit on 6 Apr each year to maximise interest, but interest rates seem to improve during the year

I'm wondering why nobody has picked up on this.

When i subscribed ON 6th April this year with the full amount, i did so with Santander at 3.50% for an instant access ISA.

Show me an instant access ISA that has beaten 3.50% since 6th April this year.

In fact show me one that comes remotely close to 3.50% now (& i'm not talking fixed rate).

bigfreddiel

K_P83 wrote: »

I'm wondering why nobody has picked up on this.

When i subscribed ON 6th April this year with the full amount, i did so with Santander at 3.50% for an instant access ISA.

Show me an instant access ISA that has beaten 3.50% since 6th April this year.

In fact show me one that comes remotely close to 3.50% now (& i'm not talking fixed rate).

ditto about my 5y frisa earning a nice 5% :j

MoneySaverLog

bigfreddiel wrote: »

and remember - base rate will still be 0.5% in Jan 2013.

Do you have a crystal ball?

bigfreddiel

MoneySaverLog wrote: »

Do you have a crystal ball?

don't need one - its plainly obvious fromjus reading the financials that the base rate will not be shifting for the next 18-24 months - anyone else that says otherwise is deluded.

just my opinion



fj