Best ISA for rising base rate over next few months???

carpy

what ISA (allowing transfers in) is likely to offer the best rate over the next 6-12 months given that the base rate is virtually certain to go out next a month, and probably again in the near future?

StevieJ

Ignore, I did not read complete message.
Cheers.

Kazza242

carpy wrote: »

what ISA (allowing transfers in) is likely to offer the best rate over the next 6-12 months given that the base rate is virtually certain to go out next a month, and probably again in the near future?

Abbey's Direct ISA (5.75% on balances of £9K+) guarantees to match all BOE base rate increases until May 2008. Kent Reliance and YBS have, so far, consistently passed on all base rate increases since last summer. However, there is no guarantee that they will both do so following any further rate rises.

carpy

Kazza242 wrote: »

Abbey's Direct ISA (5.75% on balances of £9K+) guarantees to match all BOE base rate increases until May 2008. Kent Reliance and YBS have, so far, consistently passed on all base rate increases since last summer. However, there is no guarantee that they will both do so following any further rate rises.

so abbey seems to be the best bet then.

what about ruffler? are they likely to pass on base rate rises?

gil13

Ruffler, missed out i think 2 of the last rises (although they were still in front of the rest), they also have a min of £15,000 last time I looked. We went for Kent Reliance, it is a Postal account, so a bit limited in that respect but generally most seem happy with it. They have to date passed on all the rises, usually they have their board meeting at the end of a month and then raise it, so 2 or 3 weeks behind the increase. I expect them to continue to pass on the rises with their direct ISA. Suppose it is based on what you think the interest rates are going to be doing, some of the better fixed rates might be worth considering. The plus with KR is a possible carpet bag but will have to wait and see.

emeraldbugle

Abbey's Direct ISA of 5.75% includes a variable bonus of 0.50%. I'm guessing that if the interest rate increases by 0.25%, the variable bonus magically drops to 0.25% too.

Maybe I'm just being pessimistic!

Primrose

If you don't want to be checking and possibly transferring every time the bank rate rises, I can recommend Kent Reliance which I believe are currently paying 5.71% They appear in the most consistent performers and have regularly passed on the increased rates in the past. I also find them a very efficient and prompt organisation to do business with and like the fact that they always offer a straight rate which isn't confused by short term bonuses which make many other providers less good performers which you dig into them.