Interest rates on ISA

Laurieo

One year easy access accounts are paying better than fixed accounts.
Is it best to open an easy access one now at 4.85% or a fixed one at a lower rate and protect against interest rate drops in the next year .

CrickJon

You can open both but you usually have a limited window to add funds to a fixed ISA.

Albermarle

Laurieo said:

One year easy access accounts are paying better than fixed accounts.
Is it best to open an easy access one now at 4.85% or a fixed one at a lower rate and protect against interest rate drops in the next year .

Nobody knows because we can not see into the future.

You just have to go one way or the other, and hope you are right.

Or go 50:50 with both.

gravel_2

This is a gamble that many on this forum will also be grappling with. There is no objective correct answer.

eskbanker

gravel_2 said:

This is a gamble that many on this forum will also be grappling with. There is no objective correct answer.

There is - but it won't be known until after the event, in a year's time!

Laurieo

Thinking more of the interest rate dropping on the easy access one .
If the interest rate stayed the same there is only about a £40 difference but if the rare dropped to 3% it would be about £700.
Talked myself into solution !.

slinger2

It also depends on how important it is that you can the money during the year. At the moment I'm tempted by some of the flexi easy-access ISAs because they offer good rates and I'm retaining the ability to access that money for short-term cashflow situations.

shmike

Just go with the best easy access, and if it drops...transfer it to a better rate

slinger2

shmike said:

Just go with the best easy access, and if it drops...transfer it to a better rate

The problem with that approach is that when you do want to transfer it, the "better rates" on offer might be well below the fixed rates that available now.