Savers can take advantage of six per cent ISA’s

Savers can take advantage of six per cent ISA’s February 22

Filed under ISA News by Isa guides | 0 comments

Savers have been advised to take advantage of cash ISA’s offering fixed interest rates of around six per cent, as analysts have predicted that they won’t be on offer for very much longer.

If savers do decide to invest in fixed ISA’s, rates could be secured for up to two years, even if interest rates fall.

However, potential investors might have already missed the boat: offers of 5.85 per cent were available as little as two weeks ago, while the best deals currently on the market are closer to the 5.66 per cent mark.

Experts have reasoned that this fall is due to revised expectations of interest rate increases by the Bank of England’s monetary policy committee (MPC).

It had been predicted that the MPC would choose to raises interest rates to 5.75 per cent, although it now seems that the 5.5 per cent barrier is unlikely to be breached.

Despite this, Moyeen Islam, fixed interest strategist at Barclays Capital, believes good deals are still available.

“We expect just one more rise in Bank of England base rate to 5.5 per cent in April,” she told This is Money.

“A return of 6 per cent from banks and building societies looks attractive.”

Savers have until April 5th to invest in ISA’s for the coming year.

Written Exclusively by AdFero for ISA Guides

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