Loss of interest 25 October 2022 at 9:36AM in ISAs & tax-free savings 1 reply 131 views

Silverbird65

I have a paragon ISA till next July fixed at 2.4%. it was good at the time . I have 52000 it has 90day loss will it be worth moving to 3.6% fix?
Thanks

eskbanker

Breaking a fixed term ISA doesn't actually entail loss of interest as such, but a penalty charge equivalent to n days interest is applied, so the net effect is much the same where you've already held the account for long enough.

Anyway, 90 days is roughly a quarter of a year's worth, so you'd be charged about 0.6%, so with a new rate that's 1.2% better, that would pay back in six months....