Charter Savings Bank Fixed Cash ISA Maturity Options - 1 or 2 Year?

SickGroove

Good afternoon,

I've been offered both 1 & 2 year options for my maturing Cash ISA with Charter Savings Bank...

I won't need to access the 20K within two years so with rates predicted to fall imminently, would the 2 year be the better option...

I appreciate I can get slightly better 1 & 2 year options elsewhere, but they might be withdrawn by the time my one matures in early April...

I have the interest paid away monthly to my nominated account which I'll be continuing to do...

These are the Charter options...

1 Year - 4.94% Monthly / 5.05%
2 Year - 4.55% Monthly / 4.65%

My thinking is, if I take the one year option then next April when I'll be renewing again, the rates with then be below the current monthly 4.55% on offer now.

Cheers

Ocelot

I, personally, would go for the 2 year if you don't need the money sooner. Next April rates could be down to 3.5% or less, but who knows what might happen?

At least with an ISA you can transfer out a fixed rate to a higher rate (in the unlikely even rates start to go up again), albeit with a penalty.

JGB1955

How about 50% in a 1 year fix and 50% in the 2 year fix?