Britannia fixed rate ISA for me?

tomprice

Hi,

I currently have a Mini Cash ISA with Britannia, totally standard affair. It has the full amount from last year in, and already the full amount for this year, so 6k. I believe it pays about 5.4% on this tax free.

I notice they now have a Fixed Rate Mini Cash ISA. This is fixed at 6.55% till October 2008. I'm fine to have the full 6k tied up until then.

I have a few questions though..

Oh - first of all - i definitely can't have my Mini Cash ISA AND this fixed rate one can i - it is either or? Just doubting myself here.

Should I just change my current Mini Cash ISA to this new Fixed ISA one. It seems like the obvious thing to do? What happens after October 2008 - can I just change to a standard one (like my Mini Cash ISA) after the maturity date - will they notify me regarding this? What happens to my April interest - do I just miss this and gets loads next October? I'm confused on this. When can i next put money in to this account? Would it be October 2008? That would mean i'm missing out on a few months with extra interest in?


Also it says on the website that the fixed account is a non-stakeholder account. Could someone explain what this means please?


Thanks,
Tom.

ukdutypaid

Yes it's either or, not both....
Good rate... It's your call if you think rates are going to increase.. If they do and a new on accepts transfers in, then it's 180 days notice for this one....
Will they notify.... Prob.... although, I'd keep my beady's open...

Interest,
"The interest rate is fixed until 31st October 2008 and we'll add your interest to the account on the first working day after 31st October"
That would be November the 3rd, then, from my reckoning..

"Due to the nature of the Account, no other additional investments are permitted."

Prob best reading this......
http://www.britannia.co.uk/c_savings/product/tax_free/frisa/prod.html

Non-stakeholder... As far as I can work out... from their site. It means no fees......

Good rate that one though.....

steady__eddie

Seems like a good deal especially when you take into consideration the loyalty bonus which will be TAX FREE.

baby_boomer

Well spotted s_e.

We 10 year loyal members (double reward rate = 0.44% ) are due a reward or two.

Every once in a while Britannia brings out a decent rate compared to its usual dross. (The last one was the 7.5% fixed rate regular saver + 0.44% Reward Bonus x 4 in our household.)

When they do it's wise to move fast as the offer tends to get withdrawn in no time .

tomprice

Thanks for the comments on this.

Think I will quickly change my Mini Cash ISA to this Fixed rate ISA.



Also got a First Saver with them (pays about 4.5% net) and thinking of changing this to their Direct Saver (4.6%). Not great rates, but it is only about 5k and need access to the funs 'just in case'. I need to change this as I've now reached 23 and my FirstSaver account age has been reached!

Anyone see any problems with this? Bit of a rubbish rate but best Britannia seem to offer for me (want to keep all with same company).

They were talking to me about Guaranteed Capital Investment Bond ISAs quite a bit. Seems a long time to have money tied up when I only have around 5k.

So quick question...
Direct Saver and fixed rate ISA OR
Direct Saver and Guananteed Capital Investment Bond ISA (http://www.britannia.co.uk/c_savings/product/tax_free/bonds/gcib_isa_range/index.html)

Thanks,
Tom.

ukdutypaid

The ISA looks good... Unless you think you may need instant access...
You've got more spare cash you can tie up at 23 than I ever had..

Their instant access savings rates are rubbish..... There's 6.25, 6.3 and even 6.4 out there at the mo....

An ISA is tax free, even if you do go for a slightly, lower non fixed, instant access one...

The GCA... leave it alone. Too complicated, FTSE 100 only. Too long a tie up.......... They're discussed in detail elsewhere... Search for Guaranteed, in the forums.... In the investment bit... I myself was like a lamb to the slaughter in the face of (good) advice from the likes of Cheerfulcat, Dunstone and the nutcase (lol) that is Kazza

Never say only 5k..... Money is easy enough to spend, but hard to get your hands on...... "Sumat da yuts, dnt no da menin of"

Don't get me wrong, I'm no expert but, if it's all your cash, I wouldn't tie it up betting on the FTSE 100 for even 3 years...

Cash ISA yes (fixed or variable. Only you know how quick you might need the cash), hi interest instant access savings yes.
That Guaranteed thing... no... not in my opinion anyway...

And don't forget the "recommend a friend" voucher...
http://www.britannia.co.uk/membership/member_benefits/friends_voucher.pdf

I might do it for someone if they want, as in you get the benefit, I don't .............

tracyk

tomprice wrote: »

Hi,


What happens after October 2008 - can I just change to a standard one (like my Mini Cash ISA) after the maturity date - will they notify me regarding this? What happens to my April interest - do I just miss this and gets loads next October? I'm confused on this. When can i next put money in to this account? Would it be October 2008? That would mean i'm missing out on a few months with extra interest in?


Also it says on the website that the fixed account is a non-stakeholder account. Could someone explain what this means please?


Thanks,
Tom.

Hi Tom,

The account will mature on 1st November 2008 & you will get a letter advising you of this (normally) approx. 3 weeks prior to the maturity date.
It will automatically mature into a Mini Cash ISA.
You will get 2 lots of interest (both compounded back onto the account), once on the night of 31st October this year & then again on the night of 31st October 2008.
You'll be able to invest into another Mini Cash ISA (with any provider) on or after 6th April 2008 (but you won't be able to add to this account).
Non-stakeholder really just means it's not instant access in this instance.

Hope this helps....

tomprice

tracyk wrote: »

Hi Tom,

The account will mature on 1st November 2008 & you will get a letter advising you of this (normally) approx. 3 weeks prior to the maturity date.
It will automatically mature into a Mini Cash ISA.
You will get 2 lots of interest (both compounded back onto the account), once on the night of 31st October this year & then again on the night of 31st October 2008.
You'll be able to invest into another Mini Cash ISA (with any provider) on or after 6th April 2008 (but you won't be able to add to this account).
Non-stakeholder really just means it's not instant access in this instance.

Hope this helps....

Excellent thanks. Thanks to all the replies.

So just one last question regarding this...

So if i can invest 3k again after 6th April 2008 but not in to the fixed account. Guess that makes sense. Does that mean i could open a standard Mini Cash ISA with Britannia again and stick the 3k in there - which would mean running the two parallel until October 2008 and then transferring all from the fixed back in to my new Mini Cash ISA?

That correct?
Thanks.

tracyk

tomprice wrote: »

Does that mean i could open a standard Mini Cash ISA with Britannia again and stick the 3k in there - which would mean running the two parallel until October 2008 and then transferring all from the fixed back in to my new Mini Cash ISA?

That correct?
Thanks.

Yes - or you could open another Fixed Rate ISA (if one was available - which they normally are) with any provider from 6th April onwards.... not sure if you'd transfer the matured Fixed Rate ISA into your 'new' mini cash ISA - think you'd probably leave them both as they were unless you wanted them all to go into another Fixed Rate ISA.

Also, don't forget that the Mini Cash ISA subscription limit goes up to £3,600 next tax year....