4 year isa from halifax

moneysavingaddict07

has anyone seen the latest offering from halifax?



http://www.halifax.co.uk/isas/fixedrateisa.asp

poppy10_2

Doesn't look that great, to be honest.

Interest rates depend on how long you are willing to tie in for:

1 year 6.00%
2 years 5.80%
3 years 5.95%
4 years 6.20%

I'd need a much better return to tie up my money for 4 years - interest rates may be much higher in a couple of years time.

gavinthegreat

poppy10 wrote: »

Doesn't look that great, to be honest.

Interest rates depend on how long you are willing to tie in for:


I'd need a much better return to tie up my money for 4 years - interest rates may be much higher in a couple of years time.

On the other hand though, rates could be lower and you are guaranteed a fairly decent rate of 6.20%. I think it is near the top fixed rate that accepts transfers in atm, so if you transfered now, you would be assured of a higher rate than elsewhere for the next couple of years, and surely the rate couldn't be that much lower than elsewhere for the last couple?

roysterer

If interest rates were to go a lot higher in a couple of years then simply switch to the higher rate and just forfeit 90 days interest on the fixed deal.
your then in a win win position if the new rate exceeds the penalty.
therefore it isnt really much risk at all, Probably more chance of interest rates going down over the next 4 years than going up.

Baldur

roysterer wrote: »

If interest rates were to go a lot higher in a couple of years then simply switch to the higher rate and just forfeit 90 days interest on the fixed deal..

The penalty is 180 days loss of interest, not 90, according to this.

dunstonh

Rates are likely to increase when the credit crunch shows sign of easing. Inflation needs bringing under control.