Fixed Cash ISA

[system2319]

Hi all,

My cash ISA is due to mature shortly and I am going to do a renew or transfer, had this ISA for a while now.

I normally do a 1 year fix but I keep looking at the interest rates.

I'm not sure whether to do a 2yr or a 3yr fix this time - are the interest rates likely to drop 2024 onwards? Am I better to fix for the longer period of time?

Any suggestions?

I would be inclined to fix for longer than a year…

I expect interest rates might slightly dip by the middle of next year but not by much.

People thinking they’ll come down much soon are likely to be in for a shock as inflation is still more than triple the target.

I wouldn’t bet against an interest rate rise at the next meeting either, with small 0.25pc rises every other meeting for a while.

Forecasts, accuracy uncertain, are for rates to peak at 6% then fall back over 24/25 to around 4%.
I have a bond maturing in two days and I’m sticking it in the 1 year NSI 6.2 growth bond.

Two and 3 year rates are lower than current rates so they must be expecting it to drop.

I fixed my ISA for three years. Interesting what @BorgQueen says. I have just taken the three-year 5.7% bond deal on NS&I because I think interest rate deals will be lower on average than that over the term. Hard decision though.

definitely at the peak though now

I don’t really like locking cash away for more than a year, I have an S+S ISA for long term savings but I see your point - it’s hard to predict how fast rates will come down and how low.