Money to invest, should we hang on for improved rates?

johannis

Hi, we have an elderly relative move in with us. She has sold her house and has money currently sat in normal accounts. we have been looking at 2 year fixed ISA's for her and the article of this site is very helpful, are rates going to carry on going up? Is it worth hanging on a couple of months?
thanks in advance.

RobM99

God knows and he's not telling! 

Do you need an ISA - as in, do you earn sufficient interest to pay tax on?
Interest rates might go up - personally I think so BUT they might not, I wouldn't go for a long-term fix.
 In the meantime, how about a notice accounts and/or short fixed rate bonds?

savit4l8er

This is being regularly discussed on this forum and the savings and investments forum. There are specific threads with similar titles re holding off plus it crops up in non specific threads.
It would be worth you reading the specific ones at least to get an idea of people's thoughts. 

Albermarle

In fact the one directly below this one on the board is on the same subject, as it seems are about 5 new threads every day.......
Views on interest rate movements in next 2 or 3 weeks? — MoneySavingExpert Forum

johannis

RobM99 said:

God knows and he's not telling! 

Do you need an ISA - as in, do you earn sufficient interest to pay tax on?
Interest rates might go up - personally I think so BUT they might not, I wouldn't go for a long-term fix.
 In the meantime, how about a notice accounts and/or short fixed rate bonds?

Thanks for the response, we are looking into a number of options for her. She is keen on ISA's having had a bad experience with bonds previously. It's as much about having it safe as making money on it. There are also some decent fixed rate deals on savings accounts. More a question of when i think.

Albermarle

johannis said:

RobM99 said:

God knows and he's not telling! 

Do you need an ISA - as in, do you earn sufficient interest to pay tax on?
Interest rates might go up - personally I think so BUT they might not, I wouldn't go for a long-term fix.
 In the meantime, how about a notice accounts and/or short fixed rate bonds?

Thanks for the response, we are looking into a number of options for her. She is keen on ISA's having had a bad experience with bonds previously. It's as much about having it safe as making money on it. There are also some decent fixed rate deals on savings accounts. More a question of when i think.

Slightly confusing post.
You can not compare an ISA to a bond, they are two different things.

An ISA is just a tax wrapper, which means you can keep savings and investments within an ISA and they are protected from any tax implications, although there are various rules involved.
If you are looking at savings rather than investments, then you can have easy access, notice or fixed rate accounts either within an ISA, or not in an ISA.
Often savings accounts outside an ISA, pay a better rate of interest than those within an ISA. You can earn a certain amount of interest without paying tax anyway.
So you have to decide what type of savings account you want (easy access etc ) and then decide whether to hold it within an ISA or not. It is two separate decisions.

silvermum

Depending on how much the proceeds of the house sale are, you will probably need to look at a range of options for her anyway given you can only put £20,000 into an ISA each tax year.

MiserlyMartin

Hang on, because interest rates are going sky high. They need to be at least 10% to combat inflation, better still look at moving into foriegn currency because the ££ will be much lower after Truss and co have finished spending with magic money trees

johannis

Albermarle said:

johannis said:

RobM99 said:

God knows and he's not telling! 

Do you need an ISA - as in, do you earn sufficient interest to pay tax on?
Interest rates might go up - personally I think so BUT they might not, I wouldn't go for a long-term fix.
 In the meantime, how about a notice accounts and/or short fixed rate bonds?

Thanks for the response, we are looking into a number of options for her. She is keen on ISA's having had a bad experience with bonds previously. It's as much about having it safe as making money on it. There are also some decent fixed rate deals on savings accounts. More a question of when i think.

Slightly confusing post.
You can not compare an ISA to a bond, they are two different things.

An ISA is just a tax wrapper, which means you can keep savings and investments within an ISA and they are protected from any tax implications, although there are various rules involved.
If you are looking at savings rather than investments, then you can have easy access, notice or fixed rate accounts either within an ISA, or not in an ISA.
Often savings accounts outside an ISA, pay a better rate of interest than those within an ISA. You can earn a certain amount of interest without paying tax anyway.
So you have to decide what type of savings account you want (easy access etc ) and then decide whether to hold it within an ISA or not. It is two separate decisions.

yes, apologies, i think i was just trying to explain why i'd talked about an ISA first up. I think your clarification wil be generally useful to more than just me.

Albermarle

MiserlyMartin said:

Hang on, because interest rates are going sky high. They need to be at least 10% to combat inflation, better still look at moving into foriegn currency because the ££ will be much lower after Truss and co have finished spending with magic money trees

The OP and many other posters are looking for a safe place for their money. I do not think currency speculation fits that description.....