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

innovate

Nine_Lives wrote: »

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

Shouldn't be too hard to piece together an answer for yourself from the information available on MSE. Only you can decide.

ffacoffipawb

bigfreddiel wrote: »

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

(C) Bob Monkhouse

Alicraft

I wonder if anyone could help me with the cash Isa limit. Does the interest from previous years form part of the limit or is it extra? I am sure this is commented on elsewhere in the forum but I can't find it
Many thanks
Alicraft

jimjames

Alicraft wrote: »

I wonder if anyone could help me with the cash Isa limit. Does the interest from previous years form part of the limit or is it extra? I am sure this is commented on elsewhere in the forum but I can't find it
Many thanks
Alicraft

No it isnt part of the limit

lisyloo

Does the interest from previous years form part of the limit or is it extra?

No, the limit is for deposits only.
If you had a Stocks and shares ISA and you saw 100% capital gain, then that's still fine, it's purely on deposits. (not a very likely gain I agree but just to demonstrate the point),

donniej

Average for new cash ISA accounts is 1.85% (source: BoE)

My finger in the air guess is that it'll be similar or lower next year - depending mainly on whether the BoE decides to do a new bout of QE.

donniej

I should have mentioned: that's lower than inflation (2.7% this month.)

That means that anyone who has their cash in an ISA that pays less than 2.7% per month is losing money in real terms. In fact I think the Coventry BS ISA mentioned above is the only one that pays more than that.

I don't think that will change much next year (i.e. inflation will be above what most cash ISAs pay, and we'll keep on losing money next year.)

stinktankcynic

The world has changed quite a bit recently. The government is using monopoly money, tax payers money to lend to the banks. This has the effect of reducing the value of sterling, reducing the banks need for cash off investors etc. We are left with rubbish interest rates, increasing inflation and a rising stock market. Meanwhile, inflation is likely to sky rocket, the banks will look at new ways to make money for something or nothing. Will they start charging/instead of free banking? Will everyone have to pay an insurance for care?

The government can adjust calculations, indexes, reports all they want. Truth is, inflation is probably 7% or more, whatever they want to call it, we are not coming out of this recession, double dip, depression.

PotatoPotato

donniej wrote: »

Average for new cash ISA accounts is 1.85% (source: BoE)

My finger in the air guess is that it'll be similar or lower next year - depending mainly on whether the BoE decides to do a new bout of QE.

I really hope they do not do more QE!!

I think i'll hold on for a 2.8% one.. i am regretting not opening a fixed 2yr one last year

evenasus

Nine_Lives wrote: »

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

But you can't do that if you want a fixed rate account. Not that there are any good rates out there anyway.