What do we predict the 2013/14 ISA interest rates to be?

Nine_Lives

Had a look on the first 2 pages & couldn't see anything like it.

Yes i know we don't have crystal balls, but with ISA season in 4-6 weeks i just wondered what we all thought.

I can't lock my money for any time, so myself i'm only looking at instant access. I'm thinking about 3% tops for that.

1year fixed i'm thinking about 3.2% tops.
2-5 year i couldn't tell you as i've never looked into that.

This is based totally on 100% random guess work.

Wonder who'll be spot on.

marathonic

The general consensus is that, with the funding for lending scheme, a lot of banks have sufficient funding and, rather than looking for deposits to prop up their balance sheets, they're looking for low risk borrowers to lend their money to.

Therefore, a lot of people are expecting "ISA season" to be non-existent this year. I hope this is not the case because I'm currently in a new house and, after paying the deposit, have no emergency fund or easy access cash.

I am intending on using a Cash ISA to build this up. I'll be contributing enough monthly to make full use of the Cash ISA allowance and don't care whether transfers in are excluded as I don't need to transfer anything in.

Nine_Lives

I'm in a similar boat to yourself, although you're a bit further on than me.

We're looking to be FTBs this year. When the new tax year hits, ALL of my money will be in a cash ISA (aside from the bit i have in a S&S ISA as i build my retirement fund).

Obviously i'll have to dip into this for the deposit, but will be leaving some behind for the 'emergency fund'. Just need to decide how much % to put to the deposit & how much to leave behind 'just in case'.

kidmugsy

Coventry have a 60 day notice ISA paying 2.8%, no transfers accepted. If anyone has an ISA maturing and no expectation of having new savings for a new ISA next tax year, they could always be daring and withdraw some money from the old ISA and use it to open that ISA at Coventry. They'd be wise to do it pronto before the Coventry withdraws the offer.
http://www.coventrybuildingsociety.co.uk/savings-and-investments/cash-isas/cash-isa/cash-isa.aspx
Not an option, obviously, for people who've used this year's ISA allowance already.

Come to think of it, even if they do have an expectation of some low monthly level of savings next tax year, they could always direct that to a Regular Saver rather than an ISA. 0.8 x 4% > 2%.

Or there's the Cheshire: rate of 2.5% at the moment.
http://www.thecheshire.co.uk/uploadedFiles/Resources/Documents/ISASaverFAQsCH189.pdf

planemad

I think we will see 2.8% for no transfer account and 2.5% for easier access with transfers. Both I think will be bonus rates.

I don't think we will see a 3% account. My Halifax 3% is maturing in a few weeks so I'm moving to the HSBC isa at 2.75% as I have a current account with them and hold an USA in excess of 15k.

marathonic

planemad wrote: »

I don't think we will see a 3% account.

Agreed. I don't even think we'll see a 2.8% account which makes it all the more important to open one now should the funds be available.

PotatoPotato

surprised to see how there are no 2.8% accounts.
My Halifax has matured now, I dont know where I am going to go.
Cheshire BS is only 2.5% but the highest variable that allows transfers in and a minimum deposit of £1000.

Should we sit back and wait till end of the month/start of March?

Nine_Lives

I've only been into banking for the past 3 years or so & every time i've noticed - ISA rates have always increased in March & then dipped shortly after.

Why wouldn't they do the same again? They may not increase much, but surely they'll still increase on what they are now?

Is it possible to open an ISA with someone offering the top rate, tell them you don't want to deposit anything into it (yet) & then deposit the full amount come new tax year? Assuming what some of you think comes true - that rates wont increase at all.


Wishing i'd gone through the hassle of setting up the Nationwide 4.25% last year.

innovate

Nine_Lives wrote: »

Why wouldn't they do the same again?

Because we never have had Funding For Lending before.

Banks do not need to pay Joe Bloggs for his money, they get free money from the Treasury, for several months hence.

Nine_Lives

In that case, back to my last question - opening an ISA now in order to fund later?

bigfreddiel

people laughed when i took 5% 5yr FRISA in 2011 - they're not laughing now :-)