Looking for a 3 year fixed cash ISA +>1.25%

Options
Clues in the title, I'm looking for a 3 year fixed rate cash ISA paying ideally 1.5%

I have found a 5 year fixed cash ISA at 1.51% (Virgin Money), but not a 3 year ISA

I don't really want to tie the money up for 5 years (as I suspect rates will rise in three years time), and due to the fact psychologically 5 years is a long time for me to tie money up.

Virgin do have a 3 year fixed cash ISA but it pays 1.25%

In short I want 3 a year cash ISA but also want >1.25% interest.

ANY IDEAS?
«1

Comments

  • Rich2808
    Rich2808 Posts: 1,332 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    edited 5 December 2016 at 4:14PM
    Options
    Al rayan have a one year fixed ISA paying 1.36 per cent. You could try that and relook in a year,

    It's a sharia account so not guaranteed but they have never not delivered yet and always give existing holders 3 months noticebefore changing the rate.

    Can be opened on line or on branch.

    They did have a 120 notice ISA paying 1.51 per cent but that has been pulled.

    http://www.alrayanbank.co.uk/savings/isas/fixed-term-deposit-cash-isa/
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Options
    singhini wrote: »
    I don't really want to tie the money up for 5 years (as I suspect rates will rise in three years time), and due to the fact psychologically 5 years is a long time for me to tie money up.
    ISAs can be closed at any time, so the question is, how big is the penalty for early closure?

    Also, depending on how much is in the ISA, current accounts and regular savers pay more than 1.5%.
    Eco Miser
    Saving money for well over half a century
  • singhini
    singhini Posts: 553 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    Options
    Thanks for this Rich - I was unaware Al-Rayan had branches (I should have mentioned in my previous post I really don't like doing things online and so going into a branch to open the ISA is a must).

    Theses really are desperate times for savers and I honestly cant believe we are talking about savings only paying out 1.36%

    I have a feeling the rates will start to rise in 2019 and so am trying to avoid tying my money up for 5 years to get 1.5% (I don't like stocks&share ISA due to risk getting back less than what I put in).

    So my options look to be:

    Al-Rayan 1 year at 1.36%
    Virgin Money 3 years at 1.25%
    Virgin Money 5 years at 1.51%
  • singhini
    singhini Posts: 553 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    edited 5 December 2016 at 4:58PM
    Options
    Eco_Miser wrote: »
    ISAs can be closed at any time, so the question is, how big is the penalty for early closure?


    Also, depending on how much is in the ISA, current accounts and regular savers pay more than 1.5%.

    That's a very good point - I could always open it and close it and move it if a better rate came out elsewhere (depending on the penalty)


    I have about £55,000 in ISA at the moment and so would look to open this new ISA with the £15,000 allowance + transfer in this £55,000 (I have over the £75,000 with one bank and realise I should move the money so I am below the £75k threshold)

    PS - Thanks for your response, all help is appreciated. I just want to dump some money into an ISA to avoid having too much money wth one bank and at the same time earn some interest
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Options
    singhini wrote: »
    T (I don't like stocks&share ISA due to risk getting back less than what I put in).
    That is possible, but only if you sell while showing a loss. Do you actually need this money at some specific time in the future?
    Eco Miser
    Saving money for well over half a century
  • singhini
    singhini Posts: 553 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    Options
    Eco_Miser wrote: »
    That is possible, but only if you sell while showing a loss. Do you actually need this money at some specific time in the future?

    No I don't need the money for anything specifically, and your right I would only make a loss if I sold while showing a loss. The issue with S&S ISA is they can fluctuate by 1%-2% in a few weeks and I am a chronic worrier (this fluctuation would stress me out). I know its irrational in my situation when ive just said I don't need the money but I cant help but worry about money.

    FYI i have a £45,000 mortgage but the interest rate is just 0.43% so I'm in no hurry to pay if off. I take home £2,400 (after tax) and live off £1,300 so I am comfortably saving £1,100 per month.

    I know I need to move some money out of my bank account (as I'm holding over £75,000) and I would like to earn some interest but dislike investing in investments that fluctuate and I only want to invest for about 3 years as I feel the interest rates will rise in 3 years time
  • ColdIron
    ColdIron Posts: 9,152 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    Given everyone now has a Personal Savings Allowance of £1,000 before they pay income tax ISAs are not as useful as they once were. Maybe consider a standard fixed rate, fixed term account? Tesco are offering 1.62% for a 3 year fix
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Options
    singhini wrote: »
    No I don't need the money for anything specifically, and your right I would only make a loss if I sold while showing a loss. The issue with S&S ISA is they can fluctuate by 1%-2% in a few weeks and I am a chronic worrier (this fluctuation would stress me out). I know its irrational in my situation when ive just said I don't need the money but I cant help but worry about money.
    I would worry if I kept checking the price of the investments - so I don't. I have only a vague idea of their total worth (I do have records, I just choose not to remember the detail). However if you worry about a 1-2% fluctuation, then yes, equities are not for you.
    Eco Miser
    Saving money for well over half a century
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Options
    singhini wrote: »
    Thanks for this Rich - I was unaware Al-Rayan had branches (I should have mentioned in my previous post I really don't like doing things online and so going into a branch to open the ISA is a must).

    Theses really are desperate times for savers and I honestly cant believe we are talking about savings only paying out 1.36%

    I have a feeling the rates will start to rise in 2019 and so am trying to avoid tying my money up for 5 years to get 1.5% (I don't like stocks&share ISA due to risk getting back less than what I put in).

    So my options look to be:

    Al-Rayan 1 year at 1.36%
    Virgin Money 3 years at 1.25%
    Virgin Money 5 years at 1.51%

    Are you fantastically rich? If no, why not, given you are able to forecast rates 3 years out?

    Did you realise its a near certainty that your money at 1.25% interest will be worth less in three years than you put in?
  • veryintrigued
    Options
    AnotherJoe wrote: »
    Are you fantastically rich? If no, why not, given you are able to forecast rates 3 years out?

    Did you realise its a near certainty that your money at 1.25% interest will be worth less in three years than you put in?

    So berating someone else for predicting rates.....and then predicting inflation yourself.

    The worlds gone mad.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.6K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.8K Work, Benefits & Business
  • 608.8K Mortgages, Homes & Bills
  • 173.3K Life & Family
  • 248.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards