Variable vs Fixed rate Cash ISA?

In message , Smiler writes

Are there any 3.5% deals without small print conditions? Some won't allow previous year's money to be transferred in, or require £10,000 plus before interest reaches 3.5%, etc etc., according to Martyn Lewis's site.

Nationwide's FR cash ISAs [1] go like:

1 yr - 3% 2 yr - 3% 3 yr - 3.25% 4 yr - 3%

I have a 6.15% 1 yr ISA which matures this week, (wish I'd done more at that rate) and I'll probably go for another 1 yr FR, but switch more into it from a variable rate.

[1] The last information I have is that they were not accepting transfers *in* from other banks.

Having already got a tessa isa in the nationwide at 6% still to run for another year I still have a isa stuck in the YBS with the latest change in interest rates down to a paltry 2.5%, however my gut feeling is that although theres still a lot of bad news to come yet it would be unwise to lock in at such low rates for above 1 year.

Yes, I think it's more likely to increase. However, 0.5% on 3,000 is only

15 so I don't think there's much sleep to be lost either way.

Rob Graham

My guess is that the 3.5% one will go down quite a bit in mid April / early May. There are a few banks that have good ISA rates in March and April, and rubbish rates the rest of the year.

First Direct are doing a regular saver ISA at 7% fixed for a year. Catch is of course that as it's a regular saver you have to drip the money in by SO max 300 per month - but this still works out to over 3.5%, guaranteed on the whole ISA allowance, even if you earn no interest at all on the money waiting to go in.