November rate hike ?

Mikey351
Mikey351 Posts: 1 Newbie
in ISAs & tax-free savings
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?

Comments

  • eskbanker
    eskbanker Posts: 30,995 Forumite
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    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.
  • jimjames
    jimjames Posts: 17,616 Forumite
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    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 accounts
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Neil_Jones
    Neil_Jones Posts: 8,913 Forumite
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    Mikey351 wrote: »
    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.
  • jimjames
    jimjames Posts: 17,616 Forumite
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    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.
  • Neil_Jones
    Neil_Jones Posts: 8,913 Forumite
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    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.
  • Arthurian
    Arthurian Posts: 798 Forumite
    First Post First Anniversary
    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.
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