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Fixed rate ISA's
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jeansie7
Posts: 1 Newbie
I know that Martin is telling us to ditch the ISA but i have some good advice for those who do have them . I have just saved myself hundreds of pounds by switching my ISA's to a better rate. I had several fixed rate ISA's that were not due to mature for at least another year. They were getting only 0.35% or 0.4 %. I asked my Isa's to be changed to 2% fixed for 3 years. Yes there was a penalty to pay for doing so ( 90 days interest for one and 180 days the other ) but the increase in rate more than offset this. I didn't know this was possible to do but it will gain me hundreds of pounds extra.
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Out of curiosity, what was it that led you to ignore Martin Lewis's ISA-ditching steer and to stick with them?1
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jeansie7 said:I asked my Isa's to be changed to 2% fixed for 3 years. Yes there was a penalty to pay for doing so ( 90 days interest for one and 180 days the other ) but the increase in rate more than offset this. I didn't know this was possible to do but it will gain me hundreds of pounds extra.
If you are repeatedly locking money up for long periods do you actually need it in cash? If as you say the additional interest will be hundreds then maybe some of that cash would be better off invested so that it has a chance to keep pace with inflation. Otherwise this year your money will effectively lose value by 8% (10% inflation minus 2%)Remember the saying: if it looks too good to be true it almost certainly is.1 -
To be honest if you need to keep it in an ISA I would have gone for the best variable rate rather than fix for 3 years. The prediction is for the rates to go up several more times this year so at least a variable rate will go up too. They are predicting the base rate to increase to 2.5% by the end of the year so 2 % for 3 years is not looking great.1
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Best non ISA fix - 2 year 2.57% ----- 3 year 2.67%1
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GrubbyGirl_2 said:To be honest if you need to keep it in an ISA I would have gone for the best variable rate rather than fix for 3 years. The prediction is for the rates to go up several more times this year so at least a variable rate will go up too.GrubbyGirl_2 said:They are predicting the base rate to increase to 2.5% by the end of the year so 2 % for 3 years is not looking great.
https://forums.moneysavingexpert.com/discussion/comment/79181769/#Comment_79181769
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