Transferred ISA

NebulaNova

Hi, I transferred an ISA to Moneybox last week and the interest was 4.26%.

They've since increased it to 4.51% for new customers which is really frustrating. They won't increase the rate either.

Do offers for transfers now start happening everywhere just before the new tax year?

Thanks

Ayr_Rage

Not normally, but these aren't normal times.

Five weeks ago rates were expected to fall this year, then came the Israeli and US attack on Iran, the latest predictions are for several rate rises.

Banks and building societies are factoring this into their offerings.

MACKEM99

https://forums.moneysavingexpert.com/discussion/comment/81940641#Comment_81940641

Time to go for easy access and wait a while for better fixed rates?

NebulaNova

https://forums.moneysavingexpert.com/discussion/comment/81940655#Comment_81940655

Problem with that is the extra you earn would just be taken by the tax man if you go over the limit.

Ayr_Rage

https://forums.moneysavingexpert.com/discussion/comment/81940663#Comment_81940663

I think they meant an easy access ISA.

NebulaNova

https://forums.moneysavingexpert.com/discussion/comment/81940666#Comment_81940666

Ah ok. I tend to go for those too. I'm hoping more companies offer a higher transfer rate than Moneybox at 4.26% as I'll transfer again.

NebulaNova

It looks like MSE says Moneybox only paid interest annually now, so maybe that's why they can increase the rate.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81940672#Comment_81940672

Saffron BS have an EA ISA paying 4.5% (not flexible) - not the quickest when it comes to moving money and the transfer request is on paper but it's where I'm shifting my sub-4% ISAs to.

Hopefully that rate stays put for a while.

EDIT : Paused for new applications 2 hours after posting this.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81940641#Comment_81940641

There some dissenting voices to the predicted rate rises. An energy shock will not only bump up inflation, but will depress an already rather flat economy. The BoE would probably be reluctant to push up rates in that scenario.

I read an article from Morningstar ( so quite well respected) predicting that the inflationary effect of the oil price rise will be limited, in a slowish economy with no labour shortages. In fact they predict a drop in interest rates towards the end of the year.

Altior

https://forums.moneysavingexpert.com/discussion/comment/81940641#Comment_81940641

I'd argue they are actually normal times now, with China/covid, then Putin/the Ukraine, then the October 7 2023 pogrom, and now this. Looking at least 6 years of geopolitical turmoil. Yes the narrative was rates were coming down further but we haven't been close to the supposed inflation target for long for several years. Not that we'll get to find out if the predictions were unusually correct, as they'll definitely be wrong again!

Altior

https://forums.moneysavingexpert.com/discussion/comment/81940740#Comment_81940740

We just track the Fed, which I have outlined on this forum for multiple years!

If we genuinely had our own policy, there would be no logic to raising rates due to inflation caused by a spike in oil prices.