Fixed rate ISAs - interest rates

Lyncroft

Tricky one. I'm with M&S variable at the moment. 5.75% guaranteed to equal BOE rate till Dec 2007. I'm thinking of moving to their fixed rate 6.16% ish. Where do people think interest rates will go in the next year or so. Some people are talking about 6.5% or even more. If that's the case are the non guaranteed rates going to be way behind the BOE rates or do you reckon they'll move up.

I guess what I'm worried about is fixing a rate and then finding the variable is higher than the fixed.

bristolleedsfan

imo u are best assessing the situation just before your guaranteed rate is due to end ( or switch to kent reliance variable rate isa now, as they have been excellent at passing on base rate increases on in full on its isa over a period of time (i believe it will be 6.21% from 1st august), you will be limited by the top paying variable rate and fixed rate isas that accept transfers in, in any event.