Fixed 1yr ISAs where you can pay in throughout term

CrickJon

subjecttocontract said:

But Lloyds are hardly offering market leading rates are they. What's the attraction  ? I don't get it.

I have a fixed maturing in Sept-24. The Lloyds 1 yr fix at 4.45% allows you to transfer in throughout the entire term - which is quite rare. The question for me is will 4.45% be higher than variable cash ISAs in September? I think it is quite possible.

subjecttocontract

CrickJon said:

subjecttocontract said:

But Lloyds are hardly offering market leading rates are they. What's the attraction  ? I don't get it.

I have a fixed maturing in Sept-24. The Lloyds 1 yr fix at 4.45% allows you to transfer in throughout the entire term - which is quite rare. The question for me is will 4.45% be higher than variable cash ISAs in September? I think it is quite possible.

Currently Kent Reliance B/Soc have a 1 year fixed ISA at 5.04% that allows you to pay in throughout the term as well. 

CrickJon

subjecttocontract said:

CrickJon said:

subjecttocontract said:

But Lloyds are hardly offering market leading rates are they. What's the attraction  ? I don't get it.

I have a fixed maturing in Sept-24. The Lloyds 1 yr fix at 4.45% allows you to transfer in throughout the entire term - which is quite rare. The question for me is will 4.45% be higher than variable cash ISAs in September? I think it is quite possible.

Currently Kent Reliance B/Soc have a 1 year fixed ISA at 5.04% that allows you to pay in throughout the term as well. 

I can only see this on the transfer bit:

"Transfer of additional ISA funds from other providers are permitted however this request must be received within 30 days of your account being opened. The time required to complete your transfer to Kent Reliance will be determined by your current provider."

Does that simply mean I have to notify them of my intention to transfer my Leeds fixed ISA to them when it matures? Not that they will try and take it in the first 30 days?

subjecttocontract

Sorry I missed your point about wanting to transfer an account in September.
No, I think they are saying you have 30 days to make the transfer. Personally I wouldn't open an account at 4.45% just so I could affect a transfer next September but it's your choice.

soulsaver

CrickJon said:

subjecttocontract said:

CrickJon said:

subjecttocontract said:

But Lloyds are hardly offering market leading rates are they. What's the attraction  ? I don't get it.

I have a fixed maturing in Sept-24. The Lloyds 1 yr fix at 4.45% allows you to transfer in throughout the entire term - which is quite rare. The question for me is will 4.45% be higher than variable cash ISAs in September? I think it is quite possible.

Currently Kent Reliance B/Soc have a 1 year fixed ISA at 5.04% that allows you to pay in throughout the term as well. 

I can only see this on the transfer bit:

"Transfer of additional ISA funds from other providers are permitted however this request must be received within 30 days of your account being opened. The time required to complete your transfer to Kent Reliance will be determined by your current provider."

Does that simply mean I have to notify them of my intention to transfer my Leeds fixed ISA to them when it matures? Not that they will try and take it in the first 30 days?

The request for transfer-in must be within 30 days from opening,  AND must (be able to) complete within in 60 days from being opened.

CrickJon

I'm not convinced I need to worry about it either.

I feel there is some stability in interest rates. 4.75%-5.25% seems about where I think ISAs will sit for the next 1-2 years.

subjecttocontract

We are in an election year. Come September, if we haven't already had a General Election we'll all be preparing for one. Irrespective of who wins, they aren't gonna suddenly perform a miracle, therefore I can't see interest rates falling very far, if at all. But nobody really knows do they.

soulsaver

Back on topic then...

CrickJon said:

subjecttocontract said:

CrickJon said:

subjecttocontract said:

But Lloyds are hardly offering market leading rates are they. What's the attraction  ? I don't get it.

I have a fixed maturing in Sept-24. The Lloyds 1 yr fix at 4.45% allows you to transfer in throughout the entire term - which is quite rare. The question for me is will 4.45% be higher than variable cash ISAs in September? I think it is quite possible.

Currently Kent Reliance B/Soc have a 1 year fixed ISA at 5.04% that allows you to pay in throughout the term as well. 

I can only see this on the transfer bit:

"Transfer of additional ISA funds from other providers are permitted however this request must be received within 30 days of your account being opened. The time required to complete your transfer to Kent Reliance will be determined by your current provider."

Does that simply mean I have to notify them of my intention to transfer my Leeds fixed ISA to them when it matures? Not that they will try and take it in the first 30 days?

Kent 5.04% 1 year FTBIsa
The request for transfer-in must be within 30 days from opening,  AND must (be able to) complete within in 60 days from being opened.

Rich2808

subjecttocontract said:

But Lloyds are hardly offering market leading rates are they. What's the attraction  ? I don't get it.

It is a hedge in case interest rates fall sharply - for a small initial investment. No one knows if rates will go down sharply or not - they could go up again of course!

These providers allow you to invest new money or in some cases also transfer funds in for the entire term - and Lloyds for example gives you up to 60 days to pay in your initial £3k, Other providers give you up to a month - many just two weeks to invest funds into fixed rate isas but you might of course not have the cash available at that moment to fund it!

When I opened my Lloyds two year fixed rate isa last autumn 5.5% was not the leading market rate - now the leading two year fixed rate isa is only paying 4.7%.  The top paying one year fixed is only just over 5%.

I could in theory invest my entire 2023-24 and 2024-25 and 2025-26 isa allowance and transfer prior year funds and earn 5.5% on all of this up to autumn 2025.

That is the rationale for doing so - it may be a good move it may not. But it does provide some certainty - as you can guarantee a rate for existing and new funds until April 2026.

subjecttocontract

Rich2808 said:

subjecttocontract said:

But Lloyds are hardly offering market leading rates are they. What's the attraction  ? I don't get it.

It is a hedge in case interest rates fall sharply - for a small initial investment. No one knows if rates will go down sharply or not - they could go up again of course!

These providers allow you to invest new money or in some cases also transfer funds in for the entire term - and Lloyds for example gives you up to 60 days to pay in your initial £3k, Other providers give you up to a month - many just two weeks to invest funds into fixed rate isas but you might of course not have the cash available at that moment to fund it!

When I opened my Lloyds two year fixed rate isa last autumn 5.5% was not the leading market rate - now the leading two year fixed rate isa is only paying 4.7%.  The top paying one year fixed is only just over 5%.

I could in theory invest my entire 2023-24 and 2024-25 and 2025-26 isa allowance and transfer prior year funds and earn 5.5% on all of this up to autumn 2025.

That is the rationale for doing so - it may be a good move it may not. But it does provide some certainty - as you can guarantee a rate for existing and new funds until April 2026.

Thanks. That an excellent explanation. I'm tempted to open a 2 year fix with Lloyds myself now.