5 year fixed ISA v 5year fixed bond

SallySunshine

In a bit of a muddle here.
I have an ISA. Maturing at the end of the month with the Coventry and can reinvest at 1.25% for 5 yrs.
The  Newcastle BS. Are offering 1.30%  for 5yrs
however the Newcastle have a 5yr Fixed rate bond for £1.4%
I’m not sure what to do, split the Maturing ISA and invest in the fixed rate and leave some in the Coventry
Transfer it all to the Newcastle ISA
its not very often we get a decent offer locally.
both tax payers, I realise we’d then have to pay interest by taking some out of the ISA wrapper. Same sum invested each.

 Only interested in Cash not S&S  thanks.
There is quite a large sum in the Coventry and although below £85k, I do have other ISA,s all fixed rate and all maturing in the next few years.
I know it is probably a nice problem to have but it’s driving me mad.





 

8

El_Torro

One option is not to have so much money in long term savings and invest some of it instead.

Assuming you don't want to do that are you just saying that the option is between 1.30% in a Cash ISA and 1.40% outside of an ISA? It depends on whether you are paying tax on your interest. If you are then 1.40% with 20% tax becomes 1.12% after tax, which is worse than what you're being offered in ISAs.

Another option would be to fix for less than 5 years and hope that at the end of the term there are better rates on offer. Of course there's no guarantee that there will be.

SallySunshine

Thanks for your reply,
Can’t even get the energy up to transfer fromThe Coventry at 1.25% to the Newcastle at 1.30%. This is not like me!
didn’t help getting an e- m ail  this. Morning from BLME reducing profit rates again.
Martin has a formula which I have used to shows the difference between ISA and fixed rate to make it worthwhile, somehow it didn’t seem to make sense this time. 

SallySunshine

Been looking around again and found  a 3yr fixed ISA from UBLUK at 1.4%, they will do transfers in. They also do not compound interest but pay it in to your nominated bank account annually.
However it would have to be opened by post, application form.
The Coventry  is 1.25% for 5 yrs,  matures on 31st November, and will be hearing from them soon giving their options.
I might give UBLUK a ring tomorrow, don’t want to apply, wait  for identity verification, then 
faff about sending in ID documents etc  if needed, then run out of time with my options for Coventry.

SallySunshine

Oops, looking at too any figures and got my wires crossed.
it’s is not 1.4% for a 3 yr ISA, it is for  a 3yr fixed rate account.

Upwind

SallySunshine said:

Been looking around again and found  a 3yr fixed ISA from UBLUK at 1.4%, they will do transfers in. They also do not compound interest but pay it in to your nominated bank account annually.
However it would have to be opened by post, application form.
The Coventry  is 1.25% for 5 yrs,  matures on 31st November, and will be hearing from them soon giving their options.
I might give UBLUK a ring tomorrow, don’t want to apply, wait  for identity verification, then 
faff about sending in ID documents etc  if needed, then run out of time with my options for Coventry.

SallySunshine said:

Oops, looking at too any figures and got my wires crossed.
it’s is not 1.4% for a 3 yr ISA, it is for  a 3yr fixed rate account.

UBL do a 5 Year ISA at 1.4% - not sure what they are like as a company though.  I also have a Coventry ISA expiring on 30 November 2020 - and a Paragon ISA expiring in early December 2020.  May try and find out if I can transfer both into a new account along with some new ISA money as I haven't invested this year.  Did you call them Sally?

SallySunshine

Hi Upwind, just about to do that if I can get through will let you know, I know they take transfers. 

SallySunshine

Rang UBLUK, given 4 options, no. 4 just took me back to the others?
Rang no 2 option, hanging on for 10 mins, have to leave it for now as I need to close an dire account somewhere else!. Will try later.
Tel. no is 0121 753 6000

Upwind

SallySunshine said:

Rang UBLUK, given 4 options, no. 4 just took me back to the others?
Rang no 2 option, hanging on for 10 mins, have to leave it for now as I need to close an dire account somewhere else!. Will try later.
Tel. no is 0121 753 6000

I tried also with similar results - I have just sent them a message with some questions - doesn't say how long it will take for them to get back to me... 

Upwind

Upwind said:

SallySunshine said:

Rang UBLUK, given 4 options, no. 4 just took me back to the others?
Rang no 2 option, hanging on for 10 mins, have to leave it for now as I need to close an dire account somewhere else!. Will try later.
Tel. no is 0121 753 6000

I tried also with similar results - I have just sent them a message with some questions - doesn't say how long it will take for them to get back to me... 

Should say that I know they take transfers - up to two - although it doesn't say how long you have got (after opening an account) to accomplish this. 

SallySunshine

Yes, given up now.
had a weird day trying to move money around to make sure I can get local BS fixed bond.
closed some dire  accounts, last 500 in NSI, took seconds literally, gave them good feedback in their survey. Then got completely stymied on same site trying to cash in premium bonds,  got asked a security question, had never even be given that choice!
then got locked out of account and they are sending me by Post ways to set new password and all new security questions. Ended up borrowing my O.H. Bonds for a short time, also their website is closed for maintenance this weekend so even if I’d received new way to logon before then, it would have been pointless.
on-line chat, no answer and 15 mins hanging on their phone line  was a joy!