1 year fixed cash isa???

BoxerfanUK

Hello all.  We don't currently hold any cash ISA's but looking to open 2x one year fixed with 20K each for myself and my OH before the new tax year.  We won't need access to the money during this term.  We are both taxpayers, OH @ 40%  so looking to minimize tax on savings as a fairly large sum coming our way next tax year.  We both already have the max in Premium bonds and also have other savings. 

Best rates we've seen so far are Barclays at 4% and Leeds BS @ 3.8% but problem with Barclays..... as we don't bank with them we can only open in branch but they have no appointments available until April so that counts that out!

What are peoples views? should we hold out on opening to see if any better rates come out or just bite the bullet?

Have a lovely day everyone.

eskbanker

Nobody knows for sure but consensus seems to be that rates have peaked.

I think you can open a current account online with Barclays, which then allows online opening of their ISA if you're prepared to jump through that particular hoop, or if you have/open a Virgin Money account you can open their 4.25% ISA....

BoxerfanUK

eskbanker said:

Nobody knows for sure but consensus seems to be that rates have peaked.

I think you can open a current account online with Barclays, which then allows online opening of their ISA if you're prepared to jump through that particular hoop, or if you have/open a Virgin Money account you can open their 4.25% ISA....

Thank you, I'll look into those options.

Tom_Hendo

For Barcleys, Download the app and set up a current account (Will take you 30 min max) then once open, you can apply online for their flexible ISA (1 or 2 year) really easily. 

Thanks, 

jimjames

BoxerfanUK said:

What are peoples views? should we hold out on opening to see if any better rates come out or just bite the bullet?

Have a lovely day everyone.

You mention other savings but not investments or pensions. Really you need to look at the overall picture and plans rather than just focussing on one aspect. So while it might be a good rate it doesn't necessarily mean it's the best place for the money. For a 40% taxpayer pension can be a very good option but it depends on ages and your plans for the money.

BoxerfanUK

jimjames said:

BoxerfanUK said:

What are peoples views? should we hold out on opening to see if any better rates come out or just bite the bullet?

Have a lovely day everyone.

You mention other savings but not investments or pensions. Really you need to look at the overall picture and plans rather than just focussing on one aspect. So while it might be a good rate it doesn't necessarily mean it's the best place for the money. For a 40% taxpayer pension can be a very good option but it depends on ages and your plans for the money.

Hi jimjames.  Many thanks for your comments I absolutely agree with you. 

Although I failed to mention it, I'm a retired civil servant that had 'reserved rights' to a decent final salary pension (well I think its decent anyway lol  ) I'm two years away from state pension age now and I also paid voluntary class 3 NI for three years to top up due to 'contracting out' so will be about £1 per week short of the max new state pension.  

My OH has been salary sacrificing the max into her company DC pension for the last 8 years and we also managed to pay into her pension for 3 previous years to maximize the tax advantages, so she is on course with her two DC pots of around 500K by this coming tax year.

Although we don't have any other stock market based investments we are mortgage free and also own outright a property abroad.  She is due to finish work this year so has a large bonus due which will easily put her into 45% tax.  We plan to UFPLS drawdown to within her tax code from 2024/5 until her state pension age and then reduce the drawdown after that.

Thanks again for your wise words though.  Always happy to learn and take advice from others 

artyboy

Mrs Arty recently took the interest penalty hit on 2 fixed ISAs that were paying <1.5% and they are now in 2 year ones paying 4.11/4.1% (over FSCS threshold so needed 2...).

I'd agree that rates are either near to or at peak, if you're bullish enough then you could consider a 5 year lock but for us, 2 years felt like the right duration.

BoxerfanUK

artyboy said:

Mrs Arty recently took the interest penalty hit on 2 fixed ISAs that were paying <1.5% and they are now in 2 year ones paying 4.11/4.1% (over FSCS threshold so needed 2...).

I'd agree that rates are either near to or at peak, if you're bullish enough then you could consider a 5 year lock but for us, 2 years felt like the right duration.

Thanks artyboy, I've taken an earlier posters advice and opened a Virgin Money M Plus account which has enabled me to open a Virgin money 1 year fixed cash ISA @ 4.25%  Going to do the same for OH when she gets in.
The Virgin money bank account has no fees and you don't have to pay in any money or have any direct debits as such and as long as I don't leave it completely dormant for 12 months it can stay open so I'll just transfer a few quid in from time to time and then spend it.... happy days 

flaneurs_lobster

Tom_Hendo said:

For Barcleys, Download the app and set up a current account (Will take you 30 min max) then once open, you can apply online for their flexible ISA (1 or 2 year) really easily. 

Thanks, 

Clearly not top of OP's priorities but opening a Barclay's account (and doing a bit of shuggling) will give you access to their Rainy Day Saver paying 5% on up to £5K.

Aidanmc

Tom_Hendo said:

For Barcleys, Download the app and set up a current account (Will take you 30 min max) then once open, you can apply online for their flexible ISA (1 or 2 year) really easily. 

Thanks, 

Barclays 2 year flexible Isa seems to have gone.

Winchmore_Hill_Shot

That's so frustrating.  It was still there at 11 pm last night but I was too tired so I thought I would leave it to today.   Grrrr