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Variable vs fixed rate - is there much in it?
Mela121
Posts: 12 Forumite
Hi,
I am wanting to transfer my old 2012/13 Santander variable rate ISA (3.30% inc 2.30 bonus for 12months) to a new ISA, but i'm unsure whether to opt for a fixed rate (best i've seen is about 2%) or a variable rate ISA with a bonus (I was going to go for the Leeds Bonus ISA, but it's now been withdrawn!)
Now, I'm not very clued up when it comes to variable rates and bonuses - does a bonus mean I will be guaranteed that bonus rate for how ever long it is offered (usually 12months)? And when it comes to variable rates just how variable are they? How likely is it that I will get the amount they are offering, i.e 2%? (it's probably very obvious but as I say, I'm pretty clueless)
I will be transferring over approx £9500 and have around another £2000 new money to put away.
So basically my question is - do I go for a fixed rate 1yr ISA of 2% and know what I'll get interest-wise at the end of the year, or go for a variable rate ISA with a bonus?
Am I likely to get more with the variable rate even though it IS variable?
Many thanks!
(EDITED: Originally I was questioning the Leeds ISA with a rate of 1.30% variable with a 1.25% bonus for 12months, but it has been withdrawn, but I would still like to know about how variable rate isas compare with fixed rate)
I am wanting to transfer my old 2012/13 Santander variable rate ISA (3.30% inc 2.30 bonus for 12months) to a new ISA, but i'm unsure whether to opt for a fixed rate (best i've seen is about 2%) or a variable rate ISA with a bonus (I was going to go for the Leeds Bonus ISA, but it's now been withdrawn!)
Now, I'm not very clued up when it comes to variable rates and bonuses - does a bonus mean I will be guaranteed that bonus rate for how ever long it is offered (usually 12months)? And when it comes to variable rates just how variable are they? How likely is it that I will get the amount they are offering, i.e 2%? (it's probably very obvious but as I say, I'm pretty clueless)
I will be transferring over approx £9500 and have around another £2000 new money to put away.
So basically my question is - do I go for a fixed rate 1yr ISA of 2% and know what I'll get interest-wise at the end of the year, or go for a variable rate ISA with a bonus?
Am I likely to get more with the variable rate even though it IS variable?
Many thanks!
(EDITED: Originally I was questioning the Leeds ISA with a rate of 1.30% variable with a 1.25% bonus for 12months, but it has been withdrawn, but I would still like to know about how variable rate isas compare with fixed rate)
0
Comments
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I've never had a savings account (ISA or otherwise) where the interest rate dropped before the bonus period finished, even though I always get variable rate accounts.0
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The Leeds online bonus ISA is no longer available http://www.leedsbuildingsociety.co.uk/savings/0
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You need to read the ISA fact sheets and/or the T&Cs. They will tell you exactly what you can expect from the interest rate, and also other things such as whether there are any restrictions on deposits and/or withdrawals.0
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