Advice on which is best fixed ISA

Froglet

I am looking at fixing an old Isa that has a poor interest rate at present.It has £6,000 in and i can safely leave it for 2/3 years .I have been considering the Derbyshire at 6.30% for 2 years but as a member of Northern Rock,i could more easily open theirs at a rate of 6.20% for 3 years.

As it seems as if interest rates will be going down long term,would it be better to fix for 3 years.? Only consideration is of course it is with Northern Rock,although i was not one of those who panicked and withdrew my funds at the time!!


Any advice would be gratefully received

KTF

This thread has a constantly updated list of all the ISAs available so you would be better to ask your question there:

http://forums.moneysavingexpert.com/showthread.html?t=401374

Froglet

Well,yes, i do check that out regularly,but what i wanted really was an idea of what people think is the better option.Whether to fix for 2 or 3 years,and whether to risk Northern Rock as a long term investment.

I know £6,000 is not a lot of money but over 2 or 3 years,working on the adage that rates will start to go down,it can make quite a bit of difference to the amount of interest.I don't want to tie any more cash up than this because of the heavy penalties if you do need it.

tiptoe_mouse

I wouldn't worry about northern rocck or any other bank/BS going bust - your first £35,000 with any institution is 100% covered now.

If you're undecided, you could always split it between the two places - you can do a part transfer of an old ISA (ie not this tax year's). I'd let the part transfer get sorted out before moving the remainder, though.

tiptoe