Easy access cash isa versus 1 year fix isa .

alfmurph

I have 2 one year fix isa's ending in february . 
Both with virgin so to save a lot of hazzle it would be easier to stay with them .
They offer a 1 year fix  at 0.35% but there easy access isa is 0.5% ..
They need to give you 2 month's notice to change interest rate .
Would it be best to transfer to easy interest isa and if they drop rate i could either transfer to 1 year fix with virgin or change to who is offering better rate .

masonic

Given you can get a 1 year fix at 0.6% I would say it was worth the hassle to switch providers. There are no guarantees fixed rate accounts available today will still be available in the future.

Rich2808

alfmurph said:

I have 2 one year fix isa's ending in february . 
Both with virgin so to save a lot of hazzle it would be easier to stay with them .
They offer a 1 year fix  at 0.35% but there easy access isa is 0.5% ..
They need to give you 2 month's notice to change interest rate .
Would it be best to transfer to easy interest isa and if they drop rate i could either transfer to 1 year fix with virgin or change to who is offering better rate .

The easy access isa is open only to current account holders with Virgin, Clydesdale or Yorkshire bank - hence possibly the higher rate. But how long that will hold is another matter - better to opt for a fixed rate given the way things are going assuming you won't need to access the funds for a while.

soulsaver

Switching a cash isa isn't usually a hassle. 

Albermarle

If you are a basic rate taxpayer then you can earn up to £1000 in interest tax free anyway .
In this case cash ISA's are largely redundant for most people and non ISA savings accounts usually pay a little bit better interest .