Variable or Fixed Rate ISA....that is the question

Albermarle

Kriminal said:

Thank you for all the responses, and suggestions/recommendations.  It really is a crystal ball situation

Are Trading 212 a simple straightforward type ISA, as they come across to me as more of an investment platform (from my naive point of view, maybe?)

If I was to fully invest the money to the Variable (Trading 212 or Moneybox), and the rates dropped significantly, would I still be able to chop and change this money through ISAs over the next year?

If you look at the top of the page you will see there is a sub forum for ISA’s, which could be worth your while looking through that.

Ayr_Rage

The T212 Cash ISA is just a normal flexible ISA with daily interest.

The also have an INVEST section where you can enable interest on uninvested cash, also at 5.15% with daily interest.

You do accept some risk as they hold your money in QMMFs and banks.

I've just started using it as my instant access cash account as my Chase bonus is expiring, deposits can be made by linked open banking in seconds and they also provide a sort code, account number and unique reference for normal bank transfers, faster payments work.

My test withdrawal took less than 5 minutes to arrive back at Nationwide.

Kriminal

Ayr_Rage said:

The T212 Cash ISA is just a normal flexible ISA with daily interest.

The also have an INVEST section where you can enable interest on uninvested cash, also at 5.15% with daily interest.

You do accept some risk as they hold your money in QMMFs and banks.

I've just started using it as my instant access cash account as my Chase bonus is expiring, deposits can be made by linked open banking in seconds and they also provide a sort code, account number and unique reference for normal bank transfers, faster payments work.

My test withdrawal took less than 5 minutes to arrive back at Nationwide.

The investment part is the bit that gives me palpatations lol.  I test drove just £100 with Hargreaves Lansdown a number of months ago, and it made me paranoid, checking it every single day (even though it was just £100)

My Chase saver part is also coming down over the next few days, so that was going to be part of my funds to invest in to the ISA when I open and Transfer the Zopa Fixed later this month.  For now, I'll shift the Chase money over to Zopa easy access pot, as it'll only be for a few weeks, and shift it again from there to the ISA

It's good to have all this information though, regarding the Trading 212 accounts, as it gives me more confidence knowing what I'm getting myself involved in.  So Thanks again for your input

eskbanker

twopenny said:

One mistake I made post covid and with the rules popping around compared to the past - I fixed the bulk with Santandar for 2yrs thinking rates would drop. And that's ok

What I didn't check was I don't get the interest for 2yrs..........there was no way to view the account or what it was making so I could plan accordingly.

In the past the interest has always been paid annually regardless of fix term. I just assumed and you know what that makes you

I don't think that accounts paying interest only at maturity is a particularly new thing, but if you're fixing a known amount at a known rate for a known period, it's not difficult to work out the final balance for planning purposes!  Not sure about 'no way to view the account' (as opposed to seeing what it was making, which would only be added at the end)?

Albermarle

Kriminal said:

Ayr_Rage said:

The T212 Cash ISA is just a normal flexible ISA with daily interest.

The also have an INVEST section where you can enable interest on uninvested cash, also at 5.15% with daily interest.

You do accept some risk as they hold your money in QMMFs and banks.

I've just started using it as my instant access cash account as my Chase bonus is expiring, deposits can be made by linked open banking in seconds and they also provide a sort code, account number and unique reference for normal bank transfers, faster payments work.

My test withdrawal took less than 5 minutes to arrive back at Nationwide.

The investment part is the bit that gives me palpatations lol.  I test drove just £100 with Hargreaves Lansdown a number of months ago, and it made me paranoid, checking it every single day (even though it was just £100)

My Chase saver part is also coming down over the next few days, so that was going to be part of my funds to invest in to the ISA when I open and Transfer the Zopa Fixed later this month.  For now, I'll shift the Chase money over to Zopa easy access pot, as it'll only be for a few weeks, and shift it again from there to the ISA

It's good to have all this information though, regarding the Trading 212 accounts, as it gives me more confidence knowing what I'm getting myself involved in.  So Thanks again for your input

As a general point, you probably need to get over your investing palpitations, as in the long run it is better to invest rather than hold all cash.
Do you have a pension, because they are usually invested?