Transferring ISA mid term

Tiki30

I have an ISA on a one year fix @ 1.4%. It has 80k and was started on 6th April.  There is a 90day penalty.
I could get around 3% now on a new 1 year fix but not sure if this is the time to transfer to another 1 year fix and - realising no crystal round things -would appreciate any thoughts on it. Tnx.

masonic

Transferring will cost you 0.35% of the rate you could get from the 1 year fix. Doesn't look too bad, but the lastest BoE forecast has the base rate rising from 2.25% to 4.75% in the coming months,

Tiki30

masonic said:

Transferring will cost you 0.35% of the rate you could get from the 1 year fix. Doesn't look too bad, but the lastest BoE forecast has the base rate rising from 2.25% to 4.75% in the coming months,

Yes,  I should perhaps stay as is and review in Nov/Dec.

masonic

Tiki30 said:

masonic said:

Transferring will cost you 0.35% of the rate you could get from the 1 year fix. Doesn't look too bad, but the lastest BoE forecast has the base rate rising from 2.25% to 4.75% in the coming months,

Yes,  I should perhaps stay as is and review in Nov/Dec.

If you're confident you won't hold the account to term, then you could take the hit now and transfer to easy access and get the benefit of an improved 1.9% rate, rather than continue at 1.4%.

alternate

masonic said:

Tiki30 said:

masonic said:

Transferring will cost you 0.35% of the rate you could get from the 1 year fix. Doesn't look too bad, but the lastest BoE forecast has the base rate rising from 2.25% to 4.75% in the coming months,

Yes,  I should perhaps stay as is and review in Nov/Dec.

If you're confident you won't hold the account to term, then you could take the hit now and transfer to easy access and get the benefit of an improved 1.9% rate, rather than continue at 1.4%.

I just did this very thing.  If you take the hit now you will reach break even faster.

Tiki30

masonic said:

If you're confident you won't hold the account to term, then you could take the hit now and transfer to easy access and get the benefit of an improved 1.9% rate, rather than continue at 1.4%.

I really don't mind taking a hit but would it be worth losing the 90days tho for the 0.5 gain?  Probably not worth the paperwork on two moves either versus waiting another couple of months. 

Albermarle

Tiki30 said:

masonic said:

If you're confident you won't hold the account to term, then you could take the hit now and transfer to easy access and get the benefit of an improved 1.9% rate, rather than continue at 1.4%.

I really don't mind taking a hit but would it be worth losing the 90days tho for the 0.5 gain?  Probably not worth the paperwork on two moves either versus waiting another couple of months. 

I would agree, but some posters are more MSE, and will change/do more admin, just for a few quid.

masonic

Tiki30 said:

masonic said:

If you're confident you won't hold the account to term, then you could take the hit now and transfer to easy access and get the benefit of an improved 1.9% rate, rather than continue at 1.4%.

I really don't mind taking a hit but would it be worth losing the 90days tho for the 0.5 gain?  Probably not worth the paperwork on two moves either versus waiting another couple of months. 

There's no difference between losing 90 days in a couple of months vs losing 90 days now. You'll pay £280.

You have three options:

1) Do nothing and miss out on >£100 per month more interest over the next 7 months

2) Transfer to easy access now, then to a new fix in a couple of months. You'd be £67 better off in a couple of months time by taking the penalty sooner rather than later. Overall that means you'd enter your new fix down £213. Gain at least £100 per month extra interest, probably more like £150 per month

3) Transfer to a new fix later. Start your new fix down £280. Same gain per month as (2).