5 yr Fixed rate ISA

nbrewitt

5 Year Fixed Rate Cash ISA It's the start of the new tax year and I'm looking where to put my £20K this time. Tempted by the Halifax 5yr Fixed at 2.25%, my other option is topping up a 1yr fixed with Virgin at 1.5% I won't need the money in the next 5 years so I suppose what I'm really asking is...what would everyone else do???

Passive_Investor

Definitely the 5 year fixed (if you want saving rather than investments). The 1.5% is losing to inflation so I'd avoid that, especially if you don't need the money in the next 5 years. I opened a Halifax 5 year fixed yesterday and took advantage of the decent rates while they're available.
Do you have a stocks and shares ISA as well for the longer term?

Alexland

Both options look grim as your savings will underperform the likely rate of inflation.

Do you specifically need the money in 5 years or is it worth considering investment in a well diversified global mixed asset fund via an S&S ISA? Historically this has, over the long term, beaten inflation.

Alex