Your best guess for interest rates in the next 3 year please… help me with my isa choices..

[nahthatsnotforme]

So I know no one really knows but would you fix interest for
1 year at 3.80%
2 years at 3.70%
3 years at 3.65%

Pretty unlikely I’ll need this money so not too bothered about penalties.

None of the above, do you need to keep it in cash? What’s the money for? When do you need access?

Its just savings with no plan for it (other than old age) Am not looking for anything risky or longer term

Pension or a (moderate) S&S ISA portfolio would be better, otherwise it’ll be eroded by inflation if long term

Already too old…

I'd be looking for something closer to 4%, probably for 2 years. Which provider are you looking at?

Too old for what?

Presumably too old for long-term investment in the stock market.

You can get get much better rates here https://www.moneysavingexpert.com/savings/best-cash-isa/
The market is anticipating that rates will drop by around 1% or so over the next 2 years so a longer term fix would make sense.

That said you will be eroded by inflation so if you time span is 5+ years for access I would put it in a cheap global ETF.

Kent Reliance:

1 year FRISA 4.25%
2 year FRISA 4.05%

https://www.kentreliance.co.uk/products/isas

Leeds Building Society:

3.8% on 1, 2 and 3 years FRISAs

https://www.leedsbuildingsociety.co.uk/savings/cash-isas/

I wouldn’t bother with a fixed at any of those rates and just stick it in the highest variable rate account and transfer it to another provider whenever the interest rate lags behind. I’m currently getting 4.8% on my ISA that I just transferred to a new provider, it will go down slightly with interest rate reduction, but not by a whole percent to make those fixed rates competitive, especially over a short term fix rate.

Strange how the pro-investment enthusiasts are so eager to tell people that inflation will erode the value of cash savings, but are strangely reticent about the risk to capital when investing, which isn't the case for cash savings.