Cash ISA - Tembo vs Post Office - Which do I choose?!

TheBMWGuy

Hi all, need a fairly urgent response on this. Looking to open a new Cash ISA account before the 5th April tax year end, I have £19500 to put in. I am deciding between Tembo who are offering a straight 4.8% Variable rate, or Post Office who are offering 4.4% (1.25% variable + 1yr 3.15% bonus). 

The decision comes down to this, post office are effectively guaranteeing at least 3.15% interest, and the rest on top will vary through the year. Whereas Tembo are starting strong at offering 4.8% from the get go, with the rate varying through the year. 

My question is, if I go with Tembo how likely is it that the rate will drop below the 3.15% guarantee that post office are offering? Im new to Cash ISA's so Im not fully clued on how often the rates can drop and how sharply. I don't want to be in a position where I put in the money now but later the rate changes to a lower amount than guaranteed by another provider (if that makes sense) 

Thanks in advance 

Mark_d

I wouldn't speculate on interest rates but I've head that the Post Office customer service isn't great.

If you invest with Tembo and the rate falls, I guess you can transfer to another provider

TheBMWGuy

Mark_d said:

I wouldn't speculate on interest rates but I've head that the Post Office customer service isn't great.

If you invest with Tembo and the rate falls, I guess you can transfer to another provider

So if I invest before the tax year end now, but transfer to another provider (lets say in 3 months time), does the money I transfer stay within the 24/25 year allowance? 

flaneurs_lobster

Yes, although to be more correct, the amount transferred does not contribute to your 25/26 subscriptions.

Ayr_Rage

TheBMWGuy said:

Mark_d said:

I wouldn't speculate on interest rates but I've head that the Post Office customer service isn't great.

If you invest with Tembo and the rate falls, I guess you can transfer to another provider

So if I invest before the tax year end now, but transfer to another provider (lets say in 3 months time), does the money I transfer stay within the 24/25 year allowance? 

Yes.

Your allowance is £20,000 of new funds per tax year.