Fixed Rate ISA.

Welshgirl77

Hello

I have had an ISA account for a number of years. The other day I popped into the bank and was told my ISA was on a very low interest rate, thus should update it, which I did online. I had the option of the Fixed rate ISA for 2 years or another one which I can't remember but had lower interest rate. I did opt for the Fixed rate ISA, but am now wondering if should have gone for other ISA. I read that if I withdraw money I could lose more than what I put in. How likely is this? I have planned to save £200 into this account. TIA

tiz

Which ISA with which bank?

eskbanker

Welshgirl77 wrote: »

I read that if I withdraw money I could lose more than what I put in. How likely is this?

Not likely at all - you might lose some of what you put in but you can't lose more than you put in (which would mean you owed them money!). Check the terms of the account, which will state the withdrawal penalties that apply, and if you think you might want to take money out before the end of the term then don't put any more in!

jimjames

Welshgirl77 wrote: »

I have planned to save £200 into this account. TIA

I think you might need to review the accounts you're using. If you are using a cash ISA to put £200 in then I think you are using the wrong account. Tax status is irrelevant for such sums and you will be far better off using a current account, regular saver or even a bog standard savings account. With a current account or regular saver you'll get up to 5% interest which is likely to be 10 or 20x more interest than your cash ISA.

How much is in your ISA overall?

Welshgirl77

Lloyds Bank

Welshgirl77

Sorry that was meant to say £200 a month

jimjames

Welshgirl77 wrote: »

Sorry that was meant to say £200 a month

If it's a fixed rate ISA then it may not be suitable anyway as many do not allow deposits after an initial period.

Even for £2400 per year a cash ISA is pointless when you can get 5% on that amount outside an ISA.