13/14 ISA 2 Year Fixed Prediction?

Alex92_2

Hello,

I haven't really used ISAs before, regrettably.

I was wondering if anyone could give a vague prediction on what interest rates to expect for a 2 year fixed isa for the 13/14 year.

Am I optimistic hoping for +4%?

bryanb

Yep, that's optimistic.

xylophone

Am I optimistic hoping for +4%?

Judging by current rates, yes.:(

http://moneyfacts.co.uk/compare/isas/fixed-rate-isas/

innovate

I don't like to make predictions but on this occasion I will make one: No way will you see any 4%+ deals in April.

opinions4u

3.70% for 12 months.

If you got the top Lloyds TSB 2 year rate last time!

Alex92_2

xylophone wrote: »

Judging by current rates, yes.:(

http://moneyfacts.co.uk/compare/isas/fixed-rate-isas/

I always got told they are the worst rates at the end of the financial year and always get better around mid-late march? I was hoping/expecting for them to go up.

innovate wrote: »

I don't like to make predictions but on this occasion I will make one: No way will you see any 4%+ deals in April.

Disappointing

opinions4u wrote: »

3.70% for 12 months.

If you got the top Lloyds TSB 2 year rate last time!

Last time as in last year, or two years ago?

I saw an interesting table on money facts that showed the ISA rate in comparison to the high street savings rate that would match its interest.

I'm starting to think is there any reason for me to go for a 2 year fixed rate rather than a 1 year fixed rate if the percentage difference is so minor (under 0.5%)

http://moneyfacts.co.uk/compare/isas/

Looking at the table in the link above. Anything over 3% is going to be better than using any savings accounts isnt it? If I think 4% (before tax) is good on current accounts then I should really be jumping at 3% on ISA?

ses6jwg

I won't be fixing anything longer than 12 months personally.

Alex92_2

ses6jwg wrote: »

I won't be fixing anything longer than 12 months personally.

Yeah, that's what i'm thinking of doing. Especially as easy access ISAs seem to be even higher rates than that Fixed 1 years.

http://moneyfacts.co.uk/news/isas/why-take-out-a-1-year-fixed-rate-isa/

Will put it in the highest one for now, but only as a way of building up the capital within my ISA funds. Hopefully once it goes up in a few years, 3-4% of £20,000+ will be a nice little earner.

No point in turning a blind eye at this just because the rates this year and next year are bad.

opinions4u

Last time as in last year, or two years ago?

LTSB FRISA has a top up option throughout the term.

So while I had last year's ISA season in mind, subject to any ISA allowance remaining top-up regardless of remaining term makes sense.

As the Funding For Lending programme that's driven down interest rates is scheduled to end in 12 months, I'd be reluctant to fix for longer without a very large premium rate. That doesn't exist.

Alex92_2

So you all think it's best to stick it in easy access ISA, or fixed 1 year. Nothing more, unless some stupidly good rate comes about for anything longer (which wont happen). ?

I will fill up my ISA for this year, and then fill it up again for the 13/14 year, and then put £11,400 away for just the one year.

When do the rates start becoming more appealing? And do the rates and new deals come out say, late march but say "starting for 13/14 season" or do they just come out after April 5th and its up to you to transfer as quickly as possible.

I've noticed hardly any ISAs allow transfers in from pre-existing ISAs, the top rated ones at least. Seems you have to drop .50% to allow transfers in.

pinkdalek

I'll just get my crystal ball out.............

Interest rates aren't going to rise for at least 2 years. Until banks lend more then they don't need a cash inflow. Banks won't lend more until the economy improves. Government have recently loaned monies to banks at a cheaper rate until the funds for lending scheme to help encourage more borrowing either to us consumers or businesses e.g. loans/mortgages.

Consider investment ISAs too, if you'd have invested in investment ISAs since the banking crisis you'd have made a decent return.