Beat 3.5% for 1 yr fix (need over £40k!)

Gordon_the_Moron

Probably not much use to many people as not that many have over £40k sat in an ISA but hey ho, if its any use to anyone good.

Just thought of something whilst reading the best ISAs article, if you have over £40k in cash you could beat the current top 1 yr fix (3.5% from Santander) by opening a Marks and Spencer 3yr fixed rate ISA at 3.75% and breaking early.

£40k @ 3.5% gives a return in one year of £1400
£40k @ 3.75% gives a return in one year of £1500

The breakage fee for the 3 year M&S ISA is £100 (regardless of your balance) so if you have over more than £40k you would actually gain more than you lost by paying the breakage charge rather than taking a 1 year fix (with exactly £40k you'd break even either way)

sorcerer

i do :j

But I opened the Santander 2yr fixed rate instead