BMW Savings launch 1 Year Fixed rate mini cash ISA - now 6.67%

Kazza242

beebs wrote: »

Does anyone else have any opinions on this? I am new to ISAs & have been reading up on the various information threads (these forums are fab for that by the way :T ) and this seems far & away the best offer around at the moment. In the t & c it did seem to be quite inflexible though, e.g. 45 days loss of interest if you make a withdrawal).

Any thoughts? I want to join the grown ups & sort out an ISA in the next few days :rotfl:

Cheers
beebs

If you are likely to need to make a withdrawal then I don't think a fixed rate ISA is the best one for you. You could go for a 'new money' mini cash ISA, like NS&I which pays 6.30% (min opening deposit £1,000) and guarantees to pay Bank of England base rate + 0.55% or Egg paying 6.05% (min opening deposit £1. Check out this thread for more options:

Mini Cash ISAs: The Best ISAs Currently Available List. The first post in the thread is continually updated.

Also check out Moneyfacts.

beebs

Thanks for the advice kazza - that's the thread I am currently ploughing through, very informative it is too! Cheers

isofa

If you've missed out by opening an ISA earlier this year, BMWSavings.co.uk are also offering 6.70% (gross) on a fixed rate bond as well, from my research today, it seems to be the highest rate I can find - so think I'll open one!

Strawberry_virgin

Quick question, I have an old ISA with Bank of Scotland but there are no funds in it. Do I have to close this one before opening a new one? I am thinking of going with BMW ISA at 6.70%.

Kazza242

Strawberry_virgin wrote: »

Quick question, I have an old ISA with Bank of Scotland but there are no funds in it. Do I have to close this one before opening a new one? I am thinking of going with BMW ISA at 6.70%.

If you have not paid any money into a mini cash ISA (or Maxi ISA) from April 6th 2007 to the present, then you are free to open a new mini cash ISA - with BMW or any other provider you chose. You don't have to close the Bank of Scotland ISA to do so.

hardpressed

I've already got a NS&I from last year, want to put £3000 in for this year, so do I put all my eggs in one basket and stick with NS&I or go with BMW? What's the difference in interest, in actual money, if NS&I are at 6.30 and BMW 6.67. What would my 3 grand be worth after 1 year? I sould be able to work it out but not very good with figures!

Mr_Mumble

hardpressed,

BMW pays out:
£3000 * 1.0667 = £3200.10

Difference between BMW and NS&I:
£3000 * 0.0037 = £11.10

Of course this £11.10 is reliant on NS&I's rate staying the same. There is a fair chance of another interest rate hike or even two. On the flipside NS&I may reduce rates next April. Swings and roundabouts.