Variable or fixed rate isa

LittlePants

I haven't yet bought an ISA for this tax year as I got better savings rates by other means. However, I want to buy one before this tax tear ends. But would it better to actually go for a 1 year variable rate rather than a fixed rate, with interest rates surely about to go up soon?

Any ideas anyone please?

innovate

I wouldn't hold my breath about interest rates rising anytime soon. Whether you choose fixed or variable usually depends on whether you need to spend your money in the next 12 months. If you did need to spend it, there is little point putting it into an ISA in the first instance since you get a lot better interest rates with some current accounts (such as Nationwide FlexDirect) which by definition offer instant access.

BTW, you don't "buy" a cash ISA. You simply open a savings account that is classed as an ISA, i.e. It pays interest gross and the max you can deposit is your annual ISA allowance.