ISA - should I put my £20k allowance in now or wait

RKO1

Hi
I don't know whether to lock my ISA allowance into a fixed rate ISA now or wait until interest rates get supposedly higher.

I know it's the answer everyone wants but I just want people's opinions. Thanks

Ayr_Rage

Rates are unlikely to increase now.

la531983

About to say, what on earth makes you think rates will get higher, every single analyst predict they will only go one way from here  - down.

Can you link us to a credible source claiming they are going to go higher?

Angelica123

I think you have missed the boat by a few months for the highest possible fixes. Rates are only expected to decrease from now.

GrubbyGirl_2

I opened my 2024 ISA with Oak North in mid march to lock in the rate (2 year fixed).  I'm glad I did because rates are falling.  By the time 6th April came it had fallen from 4.71% to 4.62%.  With inflation falling there is only one way interest rates are going now and that's down

subjecttocontract

The downward spiral really depends on World events......Israel, Iran, Gaza, Russia, Ukraine, oil & grain prices, Suez, inflation et c etc. We are in a very dangerous situation at the moment. A middle East war or worse might change the picture especially if the USA get dragged in. Yes the expectation is that interest rates will fall but that's assuming the status quo remains the same. Not everyone agrees that it will remain the same......gold price is an indicator of that sentiment.

Martyn_H

subjecttocontract said:

The downward spiral really depends on World events......Israel, Iran, Gaza, Russia, Ukraine, oil & grain prices, Suez, inflation et c etc. We are in a very dangerous situation at the moment. A middle East war or worse might change the picture especially if the USA get dragged in. Yes the expectation is that interest rates will fall but that's assuming the status quo remains the same. Not everyone agrees that it will remain the same......gold price is an indicator of that sentiment.

With that in mind, I'm tempted to convert my stocks and shares ISA into a cash ISA.

vacheron

RKO1 said:

Hi
I don't know whether to lock my ISA allowance into a fixed rate ISA now or wait until interest rates get supposedly higher.

I know it's the answer everyone wants but I just want people's opinions. Thanks

You can now (theoretically) open multiple ISAs in this tax year, "if" your provider has implemented the changes,
so you could hedge your bets and put some in a fixed and hold some back "just in case"

However I also feel that rates will drop, especially as ISA providers are now regularly offering higher interest on their variable rate ISAs than their fixed rate ISAs!

Albermarle

Martyn_H said:

subjecttocontract said:

The downward spiral really depends on World events......Israel, Iran, Gaza, Russia, Ukraine, oil & grain prices, Suez, inflation et c etc. We are in a very dangerous situation at the moment. A middle East war or worse might change the picture especially if the USA get dragged in. Yes the expectation is that interest rates will fall but that's assuming the status quo remains the same. Not everyone agrees that it will remain the same......gold price is an indicator of that sentiment.

With that in mind, I'm tempted to convert my stocks and shares ISA into a cash ISA.

The drama of world events and how stock markets perform is only very loosely linked, if at all. 
Since Russia's invasion of Ukraine ( if you remember there was talk of nuclear war) and its dramatic effect on energy and food prices, a typical global stock market index has risen over 25% in just over 2 years.

Ocelot

Savings rates have dropped by about 20% since last September. Whereas no one knows the future, I prefer to fix.