We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
November rate hike ?
Mikey351
Posts: 1 Newbie
Hi everyone, just new to this forum, so apologies if there is alreafy a thread which I haven't spotted. I have yet to invest the full amount in a Cash Isa this year. What is the feeling on the forum if the Bank Rate goes up soon? Will there be a surge of new offers before April 2018, or might I just as well apply for one now?
0
Comments
-
General sentiment on this forum is that putting money into cash ISAs is a complete waste of time and money!
There are many better places to put your money, as covered in the various MSE editorial articles at https://www.moneysavingexpert.com/savings/ and forum threads on the savings board.0 -
If rates go up then they're likely to be back to 0.5% as they've been since 2009. Do you think that will increase cash ISA rates? I don't, certainly not to the level where they're better than current accountsRemember the saying: if it looks too good to be true it almost certainly is.0
-
Hi everyone, just new to this forum, so apologies if there is alreafy a thread which I haven't spotted. I have yet to invest the full amount in a Cash Isa this year. What is the feeling on the forum if the Bank Rate goes up soon? Will there be a surge of new offers before April 2018, or might I just as well apply for one now?
Doubtful. The Personal Savings Allowance has made ISAs less appealing when you can earn £1k outside of them per tax year on higher rates of interest.
As an example, best Cash ISA Variable rate: 1.1%, or £11 for every £1,000 you feed it with. Best Easy access non-ISA rate: 1.27%, or £12.70 for every £1k you feed that. You can therefore put about £78,500 in the 1.27% account to use your PSA up. While the ISA is tax-free and doesn't use your PSA, the difference in interest between the 1.1% and 1.27% on £78,500 is £133 which to that point makes it pretty much the same product to a degree.
TL;DR, forget the ISA.0 -
Neil_Jones wrote: »Best Easy access non-ISA rate: 1.27%,
Best easy access rate is 5% for regular saver, 3% for larger initial deposits using current accounts.Remember the saying: if it looks too good to be true it almost certainly is.0 -
Yes but not the point I was making, to get a current account is not guaranteed, I've been rejected three times for Tesco for example, and a Regular Saver is not the same thing as an ISA. So I used the 1.27% for example purposes.0
-
The OP might have already used up as much as possible in other accounts such as bank current accounts. Personally, I don't expect a rush of good ISA offers just before the end of the financial year, but that's just a guess.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.6K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.7K Work, Benefits & Business
- 603.1K Mortgages, Homes & Bills
- 178.1K Life & Family
- 260.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards