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Variable or Fixed rate ISA?

Last post Sat, Apr 21 2007, 1:49 PM by codswolop. 3 replies.
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  •  Sat, Apr 21 2007, 1:49 PM

    Re: Variable or Fixed rate ISA?

    No. Whenever you go, it's calculated to that day.

     

    • Post Points: 5
  •  Sat, Apr 21 2007, 11:19 AM

    Re: Variable or Fixed rate ISA?

    Hi

    Thanks very much for your response, very helpful.  One more thing I noticed is that the 6.5% ISA pays its interest yearly, therefore would this not tie me to the account for atleast a year in order to recieve the interest?  In this case would I be better to choose an ISA paying interest monthly at a lower rate to allow me to switch should the rate become uncompetitive?

     

    Thanks

    LB

    • Post Points: 20
  •  Sat, Apr 21 2007, 6:54 AM

    Re: Variable or Fixed rate ISA?

    MS league tables will show you the best rate isas. If you take out the 6.5% variable isa there is no penalty for switching (transferring in industry language) into a fixed/other variable one at anytime in the future. With any variable rate product it is always important to keep a frequent eye on it just in case it becomes uncompetitive - don't invest and forget about it.
    • Post Points: 20
  •  Fri, Apr 20 2007, 4:31 PM

    Variable or Fixed rate ISA?

    Hi

    Im looking to invest in my first ISA account and am a bit unsure whether to go for a fixed or a variable rate.  The best variable rate available is 6.5% and the best fixed rate is 5.75%.  I have been keeping an eye on things and recent reports suggest interests rates are likely to rise, therefore the variable rate is unlikely to fall below that of the fixed.  Im looking to deposit around £450 - £500 to open the account and then make regular contributions upto the £3000 limit.  I am new to saving and starting to save a deposit to get on the property ladder so obviously want to make the correct decision.  Apologies if any of this sounds daft but i am looking for some reassurance and advice from the more clued up than I.

    Thanks in advance for any advice, it will be greatly appreciated.

    LB

    • Post Points: 20