Views on interest rate movements in next 2 or 3 weeks?

lohr500

We have decided to cash in our Premium Bonds after the next draw and put the cash into a combination of instant/short notice access savings accounts and 1 year fixed cash ISA's.

I guess it's like asking what the next lottery numbers will be, but what are your thoughts on rate movements over the next few weeks?

As an example, would you grab the 3.7% Shawbrook Bank 1 year fixed ISA now with the minimum required deposit and max it out next month, or sit tight in case a better offer becomes available over the next two weeks? Or go for it anyway and if something better comes along put the bulk of the cash into the latest offer?

If offers are likely to rise in the short term than I am happy to sit tight, but I don't want to lose out on what's on offer today if there is a chance that future offers could be less.

A bit of a dilemma really. Your thoughts would be appreciated!

Albermarle

If you look at a lot of threads on this, and the main Savings and Investments forum, you will see many discussing/speculating on this point.

masonic

Remember that you can only pay new money into one cash ISA per tax year, so that will limit you to one fixed cash ISA (unless using a single institution that allows split-ISAs). The base rate won't be put up again until next month, so there may well be a short period of stability before they march upward again.

lohr500

@masonic Thanks for the info on only being able to pay new money into one cash ISA per tax year. I hadn't realised this. So it would scupper my plan to open an ISA account next week with the minimum deposit and then take out another elsewhere if rates improve later in the month.
I might be better dropping the cash into our two existing Marcus instant access accounts in early November once the PB cash is released and then watching what happens to ISA rates through November. The Marcus accounts are currently paying 1.8% which isn't the best right now, but for a few days/weeks it won't make a massive difference.

Albermarle

Suggest again to read through the forum to get more up to speed on ISA rules.
Two cash ISA's in one year? — MoneySavingExpert Forum

Beddie

lohr500 said:

I might be better dropping the cash into our two existing Marcus instant access accounts in early November once the PB cash is released and then watching what happens to ISA rates through November. The Marcus accounts are currently paying 1.8% which isn't the best right now, but for a few days/weeks it won't make a massive difference.

That sounds like a sensible option to me!