which is the better option?

buzi

which is the better option, the 2.5% 1 year santander cash isa or the 3% 2 year santander cash isa? thanks

ramjug

Depends if you are happy to lock your money for 2 years? If yes, 3% otherwise 2.5%

ColdIron

Also depends if you're a 123 account holder or not, if not it's 2.8% not 3%

buzi

ramjug wrote: »

Depends if you are happy to lock your money for 2 years? If yes, 3% otherwise 2.5%

is there any chance that the rates might be better next year, or maybe im asking for the impossible considering current financial situ!

buzi

ColdIron wrote: »

Also depends if you're a 123 account holder or not, if not it's 2.8% not 3%

i have 123

slinga

Why not buy say Old Mutual UK Select Mid Cap as an ISA

Up 30% last year and 80% over the last 5 years even with the big down a few years ago.

How does 3% pa look against that and you can move your Old Mutual to different funds as it is not locked in like your cash ISAs.

ColdIron

buzi wrote: »

is there any chance that the rates might be better next year, or maybe im asking for the impossible considering current financial situ!

Impossible to say

Look at it this way, if you went for the 2.5% you'd need at least 3.5% next year to match the 2 year average of the 3% deal

Also bear in mind the 2.5% is variable so could technically go down, again doubtful but ...

For my part I'm going for the 3%

buzi

slinga wrote: »

Why not buy say Old Mutual UK Select Mid Cap as an ISA

Up 30% last year and 80% over the last 5 years even with the big down a few years ago.

How does 3% pa look against that and you can move your Old Mutual to different funds as it is not locked in like your cash ISAs.

i wish i could but havent a clue what old mutual uk is

buzi

ColdIron wrote: »

Impossible to say

Look at it this way, if you went for the 2.5% you'd need at least 3.5% next year to match the 2 year average of the 3% deal

Also bear in mind the 2.5% is variable so could technically go down, again doubtful but ...

For my part I'm going for the 3%

i suppose another way of looking at it is if i do need to move the money out before end of two year fix then i would probably get about 2.5% after penalties

Glen_Clark

slinga wrote: »

Up 30% last year and 80% over the last 5 years

investing by past performance is like driving by looking in your rear view mirror

Glen_Clark

buzi wrote: »

is there any chance that the rates might be better next year, or maybe im asking for the impossible considering current financial situ!

Good question.
Judging by the small print in Osborne's speech, the war on savers will continue, and interest rates won't rise. But he is assuming the economy will grow so that the Government won't have to borrow more money and pay more to do so. They can force us to accept their freshly printed pounds by the barrowload, but will need hard currency to pay for imports. I don't know what will happen then?