Where do you think 1 year cash ISA rates will get to before end of this tax year??

Notfarfromtheborder

I'm looking to invest around 240K this tax year (able to replace withdrawn funds this year) and 40K next tax year in one year fixed rate cash Isa's. This would leave £155K I could invest in taxable interest bearing products 

This will be funded from £435K ofset mortgage facility that now will not be used, will need to pay 2.89% interest (interest only) as got fixed rate until June 2024.

Looking now I could make around 1% net (3.9% cash isa rate available less interest on mortgage)

My gut tells me to hold off for potential rate rises following next BOE announcement, but where could 1 year fixes realistically get to by March next year?

Other option would be to go in now at 1% net and then see if there are further gains from oct 23 to june 24 with instant access

Thoughts?

masonic

It will certainly be interesting to see how things progress now a modicum of sanity has been restored to economic policy. Rates are forward looking to some extent, so the rises could be attributed not to what the MPC was doing at that moment in time, but rather where interest rates were predicted to go and for how long. That has been continuously revised upward and outward to date, but perhaps we've reached a point where the tide is starting to turn. It's really anyone's guess.

Albermarle

There are many very similar questions being asked on the forum eg
Following today's announcements, grab a deal now or wait until November? — MoneySavingExpert Forum