Fix or not to fix my cash ISA?

winkowinko

The good thing about Shawbrook and Kent Reliance is that you can add to your fixed-term ISA at any stage during its duration. 

This means that you can lock in that rate for any NEW money you may want to add later.

In 2 years time, 4.34% might be significantly better than anything else you can open. Likewise, a 5 year fix at 4.18% may also be very attractive for new money in 3 or 4 years down the line.

masonic

peter021072 said:

What would be the best up to date proxy for the direction of savings rates?  Would SONIA swap rates or SONIA forward swap rates be a good approximation?

Savings rates are affected by supply and demand between consumers and savings institutions. They can deviate from base rate and the institutional money market. SONIA will tend to track closely to the current BoE base rate and is not forward looking. You can look up the BoE yield curve to get a rough guide to the market expectations over the coming months (though beyond that there is a duration premium built in).

It's all crystal ball gazing in the end as unknown future events will have a major impact.

iantowelsh

winkowinko said:

The good thing about Shawbrook and Kent Reliance is that you can add to your fixed-term ISA at any stage during its duration. 

This means that you can lock in that rate for any NEW money you may want to add later.

In 2 years time, 4.34% might be significantly better than anything else you can open. Likewise, a 5 year fix at 4.18% may also be very attractive for new money in 3 or 4 years down the line.

Thanks winkowonko
 
That’s a great addition, I didn't realise you can add to the fix. As you say, if I knew this, I may have been tempted to go for the 5yr.

@winkowinko are you sure this is correct? I’ve had a quick look on their website and can’t see any information that states you can add to the ISA during the fix term? 

Hope I’m wrong 😃.

Thanks
Ian

paul235

It is a shame that Kent Reliance removed my online access when I transferred my matured ISA to another provider. I do not know if they will reinstate this if I transfer another maturing ISA to them or if  I would have to start again.

dunnm1

iantowelsh said:

winkowinko said:

The good thing about Shawbrook and Kent Reliance is that you can add to your fixed-term ISA at any stage during its duration. 

This means that you can lock in that rate for any NEW money you may want to add later.

In 2 years time, 4.34% might be significantly better than anything else you can open. Likewise, a 5 year fix at 4.18% may also be very attractive for new money in 3 or 4 years down the line.

Thanks winkowonko
 
That’s a great addition, I didn't realise you can add to the fix. As you say, if I knew this, I may have been tempted to go for the 5yr.

@winkowinko are you sure this is correct? I’ve had a quick look on their website and can’t see any information that states you can add to the ISA during the fix term? 

Hope I’m wrong 😃.

Thanks
Ian

Shawbrook allow you to add throughout the lifetime of a fixed term ISA up to the annual 20k limit

iantowelsh

Thanks for confirming  @dunnm1.

Do you know if they allow you to transfer other ISAs during the fixed period or is it just new deposits?

Thanks

dunnm1

iantowelsh said:

Thanks for confirming  @dunnm1.

Do you know if they allow you to transfer other ISAs during the fixed period or is it just new deposits?

Thanks

Sorry not sure, never done it.

winkowinko

iantowelsh said:

Thanks for confirming  @dunnm1.

Do you know if they allow you to transfer other ISAs during the fixed period or is it just new deposits?

Thanks

Not 100% sure, but I think they only allow it at the account opening stage. You can however add 'new' money at any stage.

It seems a bit of no brainer for everyone to open a 5 year fix with only £1 in. How else can you guarantee yourself a rate of 4.15% 3 or 4 years down the line?

dunnm1

May also be of relevance? They allow you to add to more than one ISA in the same tax year. I know it's now allowed but some banks don't (at least didn't) allow because they couldn't handle it. 

dunnm1

Just been on the Shawbrook website as wanted to checkout the 3 year fix mentioned above (only ever done 1 year fixed) and it is for me but reason for post 

• You can deposit up to £20,000 annually and also transfer balances from other ISAs