Isa Question...

[dunnitall]

Regarding personal savings, in particular ISA's. In light of the dire rates for savers, would it be prudent to have a variable cash ISA or fixed term? Having a fixed term maturing soon and now faced with the choice of what to do and most rates are around the same...rubbish IMO. What do others think?

[fiction-factory]

Depending on what other savings you have an ISA may not give the best interest rates now especially as savings accounts are all tax free for most people (given the £1000 pa PSA), although it's worth preserving a good chunk of your money is ISAs as an insurance policy for the future when the PSA may not be enough.
As for fixed v variable it depends on what teh difference in rates is and how likely you are to need your money before the end of five yeards say.
Have a look at MSE site.
Maybe have a bit of each.
The main challenge is finding a good rate on an account that accepts transfers in.
Don't close your ISA- transfer it- if you find an account

[Gizmonster]

Just repeating what's already been said, but it all depends .....
Do you have any other savings, using up your PSA, if not, then the Santander 123 account is a good bet (currently paying 3%, minus a £5 monthly charge) - even though the rate might drop soon, 'cos if you've got £20k to put in, it'll prob still beat any other accounts. If you've more, you can open up a joint account and put another £20k in there.

I closed my old ISA and did exactly what I said above. If the rates start to climb (although I can't see it happening anytime soon), your ISA allowance is now £15 240, so it won't take too long to get it back to max.

[dunnitall]

Thanks guys for your help and advice, it's decisions, decisions now and not a lot of time to do it in because the ISA matures soon. Can I just ask, if I transfer the whole ISA to another provider OR into another account with same provider does that mean I can't open up a new ISA with other cash? Thanks. Will also look into the ordinary saving options too.

[fiction-factory]

If you transfer your ISA then you can also open and pay into another ISA - provided you haven't already contributed to a cash ISA in the current tax year.

[DocHH]

You could also consider transferring your Cash ISA into a Stock/Share ISA. OK, the capital is at risk, but over the long term less riskier. I have several Stock ISAs that have grown more quickly than Cash ISA's with interest reinvested, and are now returning over 4% in income. Not a route to take if you are risk averse however.