New year Fix , but for how long ?

dino2020

Looking to open a new year Fixed Cash ISA  but the best rates are approx 5.0, 4.6 and 4.3 %  for 1 ,2 and 3 year  respectively.

Which would you choose and why ?

JGB1955

How about splitting your £20K between the three options?

jcontest

If only we could see the future.

I would think most should consider the penalty for the 2, 3, and 5 year fixes as those will sting if you want/need to move that cash out. 

It's a gamble either way... If BoE holds the rates steady until this time next year then a fix over 1y is worse, If BoE drops the rate any time between now and next year and keeps them down then your probably going to be off just as well or better than those who didn't fix. 

What pony do you want to gamble on .

Loanranger21

I think if labour win the general election that will spook the markets.  What that means for BofE interest rates I don’t know. I am going for a two year fix and have already opened one with the Coventry as they are so reliable with great call centre based in Coventry. 

eskbanker

Loanranger21 said:

I think if labour win the general election that will spook the markets.  What that means for BofE interest rates I don’t know. I am going for a two year fix and have already opened one with the Coventry as they are so reliable with great call centre based in Coventry. 

Markets are already likely to be factoring that in as an expected outcome - anyone involved in setting long term rates has to make a judgement call about probabilities, so if something happens much as predicted then it obviously won't be a shock!

dino2020

JGB1955 said:

How about splitting your £20K between the three options?

Good idea, but did not know you could open 2 cash isa in one finacial year, or have we missed some point ?

Kim_13

dino2020 said:

JGB1955 said:

How about splitting your £20K between the three options?

Good idea, but did not know you could open 2 cash isa in one finacial year, or have we missed some point ?

This is permitted as of today, the changes were announced in the Autumn Statement: https://www.moneysavingexpert.com/news/2023/11/autumn-statement-lifetime-isa-changes/