Crystal ball thoughts - 1 year or 2?

Yorkie1

I have not yet funded this year's cash ISA, and have just got a matured previous year's cash ISA.

Rates for both 1- and 2- year cash ISAs are about 4.6%.

I haven't been tracking the rates over the last month or so, to see whether the general direction of travel is up or down. I am happy with either duration.

Any thoughts?!

masonic

From what I've seen, forecasts for end of 2026 range between 1 drop to 2 rises. Beyond that is anyone's guess as all is being driven by the Iran crisis and downstream inflation. There is also likely to be a mini-budget incoming.

I would not fix for longer than a year personally.

InvesterJones

If the decision is stopping you from buying, split it and do both.

slinger2

I've just gone for a 2 year fix with RCI at 4.60%. Normally I go for 1-year fixes but I have 3 of those maturing between December and next April. Would perhaps have gone for a shorter Skipton ISA but they pulled it before I was ready. On the scale of investing the differences are really quite small. Moved an old AVC (Pension) to Vanguard 2 years ago and that's up 37% in that period. Of course it could have gone down 37%, but the point is that the odd fraction of a per cent on a Cash ISA is really neither here nor there.

Ocelot

I always go for 3 years fixes on my ISAs as I'm always expecting rates to suddenly plummet!

In reality, why not do what InvestorJones suggests?