If I don't need the money, should I definitely Fix?

EnglishTutor

I'm new to the world of investment.

There's a lot of talk on here about instant access cash ISAs, but little about fixed.

If I don't need the money for at least a year, should I fix?

p00hsticks

You generally get a better rate if fixing for a certain period. If you definitely won't need the money for that period, and can't find as good a rate on an easy access product, then fix. 

The main disadvantage of fixed rate products is that they usually expect you to put in all the money at the start of the fix, and won't allow further additions, so not suitable for those gradually building up their savings through the year.   

sammy_zammy

p00hsticks said:

You generally get a better rate if fixing for a certain period. If you definitely won't need the money for that period, and can't find as good a rate on an easy access product, then fix.    

Thing is, you can find several easy access products on better rates than fixed. Significantly so for products with a temporary bonus. So really it’s anyone’s guess which is the better option.

Malchester

Yes. I have put my ISA allowance for the new tax year into an easy access ISA for now as the rates for easy access are better than a fixed rate. As rates move over coming months I am keeping an eye on them and will transfer to a fix should the rate be worth it. 

EnglishTutor

Thanks for the advice.  I think given that I don't need the money and given the current state of the markets, maybe a Stocks & Shares ISA makes more sense.  Been looking at Vanguard Lifetime 60% Accumulation

surreysaver

Don't forget, with an ISA, you can take your money out (for a penalty if fixed), unlike most normal fixed rate savings accounts, should you need the money for an unforeseen reason 

eskbanker

EnglishTutor said:

Thanks for the advice.  I think given that I don't need the money and given the current state of the markets, maybe a Stocks & Shares ISA makes more sense.  Been looking at Vanguard Lifetime 60% Accumulation

That was quite a jump from relative benefits of fixed v variable cash ISAs to deciding that investing is a better fit for your requirements!  Investing does entail a different mindset and risk profile and would generally warrant more research - the product you refer to is actually LifeStrategy for example....

EnglishTutor

eskbanker said:

EnglishTutor said:

Thanks for the advice.  I think given that I don't need the money and given the current state of the markets, maybe a Stocks & Shares ISA makes more sense.  Been looking at Vanguard Lifetime 60% Accumulation

That was quite a jump from relative benefits of fixed v variable cash ISAs to deciding that investing is a better fit for your requirements!  Investing does entail a different mindset and risk profile and would generally warrant more research - the product you refer to is actually LifeStrategy for example....

I may be new to investing, but I'm a quick learner 😀

As mentioned, I really don't need the money to fund day to day costs and also have my 6 figure rainy day fund, so I thought, why not dip my toe into the markets, given their current levels, and invest in some ETFs.

boingy

EnglishTutor said:

eskbanker said:

EnglishTutor said:

Thanks for the advice.  I think given that I don't need the money and given the current state of the markets, maybe a Stocks & Shares ISA makes more sense.  Been looking at Vanguard Lifetime 60% Accumulation

That was quite a jump from relative benefits of fixed v variable cash ISAs to deciding that investing is a better fit for your requirements!  Investing does entail a different mindset and risk profile and would generally warrant more research - the product you refer to is actually LifeStrategy for example....

I may be new to investing, but I'm a quick learner 😀

As mentioned, I really don't need the money to fund day to day costs and also have my 6 figure rainy day fund, so I thought, why not dip my toe into the markets, given their current levels, and invest in some ETFs.

6 figures is one heck of a rainy day fund! Everyone has different needs and living standards but you might want to consider locking some of that away in longer term investments like pension and S&S ISAs. 

Albermarle

EnglishTutor said:

eskbanker said:

EnglishTutor said:

Thanks for the advice.  I think given that I don't need the money and given the current state of the markets, maybe a Stocks & Shares ISA makes more sense.  Been looking at Vanguard Lifetime 60% Accumulation

That was quite a jump from relative benefits of fixed v variable cash ISAs to deciding that investing is a better fit for your requirements!  Investing does entail a different mindset and risk profile and would generally warrant more research - the product you refer to is actually LifeStrategy for example....

I may be new to investing, but I'm a quick learner 😀

As mentioned, I really don't need the money to fund day to day costs and also have my 6 figure rainy day fund, so I thought, why not dip my toe into the markets, given their current levels, and invest in some ETFs.

Vanguard Life Strategy 60 is not an ETF, it is an OEIC fund.

For the details, you would best to google it, but in summary.

ETF's are like a share, you can buy and sell them on the stock market in real time. They tend to be quite simple and just track an index, such as the FTSE 100 for example.

With OEIC funds, you buy units in the fund. They are only priced once daily, so you do not know the exact price when you buy or sell. The funds can be simple, or a big mix of other investments. VLS 60 is a mixture of shares and bonds.

EnglishTutor

Albermarle said:

EnglishTutor said:

eskbanker said:

EnglishTutor said:

Thanks for the advice.  I think given that I don't need the money and given the current state of the markets, maybe a Stocks & Shares ISA makes more sense.  Been looking at Vanguard Lifetime 60% Accumulation

That was quite a jump from relative benefits of fixed v variable cash ISAs to deciding that investing is a better fit for your requirements!  Investing does entail a different mindset and risk profile and would generally warrant more research - the product you refer to is actually LifeStrategy for example....

I may be new to investing, but I'm a quick learner 😀

As mentioned, I really don't need the money to fund day to day costs and also have my 6 figure rainy day fund, so I thought, why not dip my toe into the markets, given their current levels, and invest in some ETFs.

Vanguard Life Strategy 60 is not an ETF, it is an OEIC fund.

For the details, you would best to google it, but in summary.

ETF's are like a share, you can buy and sell them on the stock market in real time. They tend to be quite simple and just track an index, such as the FTSE 100 for example.

With OEIC funds, you buy units in the fund. They are only priced once daily, so you do not know the exact price when you buy or sell. The funds can be simple, or a big mix of other investments. VLS 60 is a mixture of shares and bonds.

Sorry, should have explained, I was looking at the Vanguard FTSE All-World (Acc)