How are ISA rates likely to change after 6th April 2013

imarr17

I have a Nationwide fixed rate ISA due to mature toward the end of April.

Nationwide rules allow nomination for reinvestment up to 3 weeks prior to maturity.

Currently Nationwide are offering 3% fixed for 4yrs for maturing ISA reinvestment.

Is it likely that this rate will be retained, be reduced or be increased AFTER the 6th April 2013 ie at the start of the new financial year?

In other words, should I make my nomination now or wait until the new year rates are announced?

talexuser

We don't know.

But:

The latest BOE credit condition survey says mortgage rates are to fall further (having already fallen 3 quarters in a row) for at least the next 3 months.

BOE says it's up to competition... :rotfl:

Lenders say it's because they have plenty of money from the Gov Funding for Landing scheme (ie taxpayers (our) money).

This does not suggest to me that savings rates are going to improve anytime soon. If you see a top rate, I would snap it up before it disappears.

Totton

Banks are getting cheap money from the Govt, they do not need to worry about savers at this moment in time. I expect interest rates to be dire for some time until the Govt remove cheap lending otherwise known as bottling up problems for the future, I'd hazard a guess and suggest after the next election may be a turning point, the Govt. are quite happy to stitch the grey vote up but if those folk turn by 2015 then interest rates would be one way to get them back on side.

So, do your ISA at the earliest point to take advantage of a full years tax-free status.

2010

Banks are getting cheap money from the gov. BUT the gov. have now come out with a crackpot scheme to finance the housing market using tax payers money.
Shouldn`t the banks be proving mortgages and not the gov.

It seems that the top rates for cash ISAs are 2,5%, either variable or fixed for a year.
Halifax have a 5 year for 3.1%.
I, personally, wouldn`t fix for more than 2 years.

Rates are crap and will remain so, while the BoE and the gov. are more concerned about mortgage payers than savers.

roddydogs

Good job I got 3.1% till Sep with NW from last April. Wonder what Ill get then?

talexuser

roddydogs wrote: »

Wonder what Ill get then?

On present trends best available 1.5% gross?