Anticipated fixed-term rates at start of new financial year?

Desk

I've exhausted my ISA allowance for 24/25 and now have some money waiting to go into a new 25/26 account once I can open it.

What I'm wondering is what we might expected in terms of fixed-term rates come April 6, in just a few short weeks?

Current returns are pretty good, but I wonder if that's driven by competition to attract remaining money people have yet to commit to an ISA in this financial year? Could we see these returns fall off precipitously as we go into April, or could there be competition for the next anticipated round of investment?

I don't think any further base rate cuts are likely between now and then, but I can't remember what's happened in previous years.

Hoenir

Rates will be driven by the demand for depositors money. Economy slows. Borrowing may follow. 

jimjames

I can't see rates being any different to now other than moving slightly lower as interest rates fall. No competition for funds needed so that won't drive rates higher

gravel_2

Desk said:

I don't think any further base rate cuts are likely between now and then, but I can't remember what's happened in previous years.

Previous years have no influence here surely? The next BoE MPC meeting is 20 March 2025. At this they may reduce a further 0.25% which would likely drag down the interest rates offered by the banks.

If you are worried or find a product now that you like then you may want to consider the funding window offered by it. For example if you have 30 days to pay in then there is, afaik, nothing stopping you opening that account on 15 March and then paying into it once the new tax year starts.

Bobblehat

I did a little digging recently regarding ISA funding windows and I was surprised at the result.

I had previously thought most EA ISAs had long initial deposit widows, but found some as short as 5 & 7 days ... and at least one that was open ended. This is assuming you can trust the word of CS agents or T&C's where they bother to publish such numbers!

If you see an EA ISA product you like now (as gravel_2 mentions), and intend to fund it in 25-26 Tax Year, check the T&C's for how short or long the initial funding window is!

Albermarle

Bobblehat said:

I did a little digging recently regarding ISA funding windows and I was surprised at the result.

I had previously thought most EA ISAs had long initial deposit widows, but found some as short as 5 & 7 days ... and at least one that was open ended. This is assuming you can trust the word of CS agents or T&C's where they bother to publish such numbers!

If you see an EA ISA product you like now (as gravel_2 mentions), and intend to fund it in 25-26 Tax Year, check the T&C's for how short or long the initial funding window is!

Easy access ISA's would not normally have a funding window. You can add or withdraw from them at any time.

Fixed term ISAs ( which was the OP was enquiring about) do have funding windows, usually 14 to 30 days, but can be less or more, and a few are open ended.

Bobblehat

Albermarle said:

Bobblehat said:

I did a little digging recently regarding ISA funding windows and I was surprised at the result.

I had previously thought most EA ISAs had long initial deposit widows, but found some as short as 5 & 7 days ... and at least one that was open ended. This is assuming you can trust the word of CS agents or T&C's where they bother to publish such numbers!

If you see an EA ISA product you like now (as gravel_2 mentions), and intend to fund it in 25-26 Tax Year, check the T&C's for how short or long the initial funding window is!

Easy access ISA's would not normally have a funding window. You can add or withdraw from them at any time.

Fixed term ISAs ( which was the OP was enquiring about) do have funding windows, usually 14 to 30 days, but can be less or more, and a few are open ended.

I also thought that EA ISA's would not normally have a funding window either  ..... but when I inquired by live web chat or by looking in the T&C's specifically about initial funding I was told by (or saw) that some say they did. Kent Reliance CS, for example, said 7 days to fund after EA ISA opened. That surprised me! Another Society's CS said 5 days!

Having said that, we've seen plenty of reports on this forum about some CS's being ... let's politely say, .... less accurate than others!

The message is though, EA or Fixed ISA, check the initial funding window beforehand if for some reason you wish to delay funding after opening the account.

fuzzzzy

Albermarle said:

Bobblehat said:

I did a little digging recently regarding ISA funding windows and I was surprised at the result.

I had previously thought most EA ISAs had long initial deposit widows, but found some as short as 5 & 7 days ... and at least one that was open ended. This is assuming you can trust the word of CS agents or T&C's where they bother to publish such numbers!

If you see an EA ISA product you like now (as gravel_2 mentions), and intend to fund it in 25-26 Tax Year, check the T&C's for how short or long the initial funding window is!

Easy access ISA's would not normally have a funding window. You can add or withdraw from them at any time.

Fixed term ISAs ( which was the OP was enquiring about) do have funding windows, usually 14 to 30 days, but can be less or more, and a few are open ended.

I guess a lot of easy access accounts still have some sort of minimum operating balance, even if it is only a quid, so you might expect some also to have an initial funding window to reach that minimum balance.

jimjames

Bobblehat said:

Albermarle said:

Bobblehat said:

I did a little digging recently regarding ISA funding windows and I was surprised at the result.

I had previously thought most EA ISAs had long initial deposit widows, but found some as short as 5 & 7 days ... and at least one that was open ended. This is assuming you can trust the word of CS agents or T&C's where they bother to publish such numbers!

If you see an EA ISA product you like now (as gravel_2 mentions), and intend to fund it in 25-26 Tax Year, check the T&C's for how short or long the initial funding window is!

Easy access ISA's would not normally have a funding window. You can add or withdraw from them at any time.

Fixed term ISAs ( which was the OP was enquiring about) do have funding windows, usually 14 to 30 days, but can be less or more, and a few are open ended.

I also thought that EA ISA's would not normally have a funding window either  ..... but when I inquired by live web chat or by looking in the T&C's specifically about initial funding I was told by (or saw) that some say they did. Kent Reliance CS, for example, said 7 days to fund after EA ISA opened. That surprised me! Another Society's CS said 5 days

That's a very different scenario. Most banks will have an initial funding window, no point having lots of accounts opened with no balance paid into them. It doesn't mean you can't add more money though which is the case with most fixed rate accounts.

Yorkie1

Bobblehat said:

Albermarle said:

Bobblehat said:

I did a little digging recently regarding ISA funding windows and I was surprised at the result.

I had previously thought most EA ISAs had long initial deposit widows, but found some as short as 5 & 7 days ... and at least one that was open ended. This is assuming you can trust the word of CS agents or T&C's where they bother to publish such numbers!

If you see an EA ISA product you like now (as gravel_2 mentions), and intend to fund it in 25-26 Tax Year, check the T&C's for how short or long the initial funding window is!

Easy access ISA's would not normally have a funding window. You can add or withdraw from them at any time.

Fixed term ISAs ( which was the OP was enquiring about) do have funding windows, usually 14 to 30 days, but can be less or more, and a few are open ended.

I also thought that EA ISA's would not normally have a funding window either  ..... but when I inquired by live web chat or by looking in the T&C's specifically about initial funding I was told by (or saw) that some say they did. Kent Reliance CS, for example, said 7 days to fund after EA ISA opened. That surprised me! Another Society's CS said 5 days!

Having said that, we've seen plenty of reports on this forum about some CS's being ... let's politely say, .... less accurate than others!

The message is though, EA or Fixed ISA, check the initial funding window beforehand if for some reason you wish to delay funding after opening the account.

Kent reliance is 30 days, according to the documents I received for my recently opened Fixed rate ISA with them

Bobblehat

Yorkie1 said:

Bobblehat said:

Albermarle said:

Bobblehat said:

I did a little digging recently regarding ISA funding windows and I was surprised at the result.

I had previously thought most EA ISAs had long initial deposit widows, but found some as short as 5 & 7 days ... and at least one that was open ended. This is assuming you can trust the word of CS agents or T&C's where they bother to publish such numbers!

If you see an EA ISA product you like now (as gravel_2 mentions), and intend to fund it in 25-26 Tax Year, check the T&C's for how short or long the initial funding window is!

Easy access ISA's would not normally have a funding window. You can add or withdraw from them at any time.

Fixed term ISAs ( which was the OP was enquiring about) do have funding windows, usually 14 to 30 days, but can be less or more, and a few are open ended.

I also thought that EA ISA's would not normally have a funding window either  ..... but when I inquired by live web chat or by looking in the T&C's specifically about initial funding I was told by (or saw) that some say they did. Kent Reliance CS, for example, said 7 days to fund after EA ISA opened. That surprised me! Another Society's CS said 5 days!

Having said that, we've seen plenty of reports on this forum about some CS's being ... let's politely say, .... less accurate than others!

The message is though, EA or Fixed ISA, check the initial funding window beforehand if for some reason you wish to delay funding after opening the account.

Kent reliance is 30 days, according to the documents I received for my recently opened Fixed rate ISA with them

As I've said  ... it's the 7 days initial funding for an Easy Access ISA that surprised me! I hope the CS agent was wrong!