Is a fixed ISA any good?

gadget88

I have found my interest rate almost half in past year or so. Is a fixed one any good? I believe I can earn £1500 in interest over a 2 year fixed rate. That’s on 20k. I will have other savings I can use. I am confused by early closure charges any ideas what sort of figure this would be? Can you still view your isa in your banking app?

I did read there will be just one more interest drop this year. To help me make my choice how low are rates expected to go? I heard they won’t go back to previous levels but they have halved so far so how low can I expect it and will they stay a certain amount for stability?

Rates were 0.75% in 2019. According to Google the aim is 3.5 to 4 right through to 2030 is this about right? Would we expect not to see rates as low as 2019 for savers again?

wmb194

gadget88 said:

I have found my interest rate almost half in past year or so. Is a fixed one any good? I believe I can earn £1500 in interest over a 2 year fixed rate. That’s on 20k. I will have other savings I can use. I am confused by early closure charges any ideas what sort of figure this would be? Can you still view your isa in your banking app?

I did read there will be just one more interest drop this year. To help me make my choice how low are rates expected to go? I heard they won’t go back to previous levels but they have halved so far so how low can I expect it and will they stay a certain amount for stability?

Rates were 0.75% in 2019. According to Google the aim is 3.5 to 4 right through to 2030 is this about right? Would we expect not to see rates as low as 2019 for savers again?

For ease of comparison it's better to talk in annual percentages rather than, "£1,500 in interest over a 2 year fixed rate" = 3.75% p.a. At the moment you can do better than that, up to 4.2%.

https://moneyfactscompare.co.uk/isa/2-year-fixed-rate-isas/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate

The terms and conditions of the account will give you the penalty for early access e.g., 90 days' interest.

Rates aren't expected to drop much further. The post financial crisis levels were historically low and we shouldn't expect to see them again unless there's another huge crisis.

Organgrinder

You can get above 4% on 1, 2, 3 and even 5 year fixed rate cash ISAs.

https://www.moneysavingexpert.com/savings/best-cash-isa/#twoyearfixed

Zanderman

Might be worth looking and asking on the ISA board rather than bank accounts board:  https://forums.moneysavingexpert.com/categories/isas-tax-free-savings

eskbanker

gadget88 said:

Rates were 0.75% in 2019. According to Google the aim is 3.5 to 4 right through to 2030 is this about right? Would we expect not to see rates as low as 2019 for savers again?

What do you mean by 'according to Google' - if you mean that you used their search engine and found a site saying that, that's hardly something to pin on Google as a corporate entity, but it would generally be worth specifying which actual site said that.

Likewise 'aim' - I'm not aware of any 'aim' to reach a specific figure for typical savings interest rates up to an arbitrary future date, who would have such an aim?

Malchester

Rather than use the link to MSE a much better and more reliable list can be found here 

Moneyfactscompare.co.uk

eskbanker

Malchester said:

Rather than use the link to MSE a much better and more reliable list can be found here 

Moneyfactscompare.co.uk

Links to both have already been shared by earlier posters - not sure it's valid to generalise that one is 'much better' than the other, but the Moneyfacts listings are certainly far more comprehensive, while MSE (deliberately) offers a simpler summary of a few best buys with some commentary, which suits many.

35har1old

eskbanker said:

gadget88 said:

Rates were 0.75% in 2019. According to Google the aim is 3.5 to 4 right through to 2030 is this about right? Would we expect not to see rates as low as 2019 for savers again?

What do you mean by 'according to Google' - if you mean that you used their search engine and found a site saying that, that's hardly something to pin on Google as a corporate entity, but it would generally be worth specifying which actual site said that.

Likewise 'aim' - I'm not aware of any 'aim' to reach a specific figure for typical savings interest rates up to an arbitrary future date, who would have such an aim?

A person currently looking to invest in a cash ISA what interest rate  should they be considering if investing for upto 5 years 2025 -2030

Barkin

35har1old said:

eskbanker said:

gadget88 said:

Rates were 0.75% in 2019. According to Google the aim is 3.5 to 4 right through to 2030 is this about right? Would we expect not to see rates as low as 2019 for savers again?

What do you mean by 'according to Google' - if you mean that you used their search engine and found a site saying that, that's hardly something to pin on Google as a corporate entity, but it would generally be worth specifying which actual site said that.

Likewise 'aim' - I'm not aware of any 'aim' to reach a specific figure for typical savings interest rates up to an arbitrary future date, who would have such an aim?

A person currently looking to invest in a cash ISA what interest rate  should they be considering if investing for upto 5 years 2025 -2030

Strange question!  The only rates to consider are those that are available.

Ergates

35har1old said:

eskbanker said:

gadget88 said:

Rates were 0.75% in 2019. According to Google the aim is 3.5 to 4 right through to 2030 is this about right? Would we expect not to see rates as low as 2019 for savers again?

What do you mean by 'according to Google' - if you mean that you used their search engine and found a site saying that, that's hardly something to pin on Google as a corporate entity, but it would generally be worth specifying which actual site said that.

Likewise 'aim' - I'm not aware of any 'aim' to reach a specific figure for typical savings interest rates up to an arbitrary future date, who would have such an aim?

A person currently looking to invest in a cash ISA what interest rate  should they be considering if investing for upto 5 years 2025 -2030

A person should be considering the highest rate available.