Fixed or Variable?

redjumpa

It looks like it may be a better deal to take the M&S fixed 1 year ISA and pay the penalty for early withdrawal than take the lower rate instant access. Any ideas if this stacks up........or am I missing something?

psychic_teabag

I think many fixed ISAs allow early access with a penalty. Usually as a percentage of the amount withdrawn (expressed as a number of days lost interest) whereas MS tend to have a fixed penalty. So whether M&S is better depends very much on the balance. (And how likely you are to need to access the money.)

For new money, Coventry's notice ISA seems a good deal.

The extra margin M&S are offering for 1-year fix over instant-access doesn't seem worth the hassle to me. Instant access means no penalty to transfer around March/April (when the rates are usually better).

kidmugsy

While interest rates are so dire I'd be looking for accounts with no restrictions on transferring the money later on.