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Nationwide 3 year fixed cash ISA 4.40% (transfers accepted)
Nationwide 3 year fixed cash ISA 4.40% (transfers accepted)

Nationwide 3 year fixed cash ISA 4.40% (transfers accepted)

Market leading rate for 3 year fixed ISA. - good deal if you can lock the money in for 3 years

Interest paid annually (4.39% if paid monthly)

Part withdrawals are not permitted. Early closure will incur an interest penalty, please see terms and conditions.

Please note, transfers in from existing cash ISAs with another provider are accepted into this product

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14 Comments

Original Poster

Confused, wouldn't the monthly one give a better return if the interest is compunded? Or would it be with the annual one too just paid in one sum a year?

Original Poster

_dash;8002407

Confused, wouldn't the monthly one give a better return if the interest … Confused, wouldn't the monthly one give a better return if the interest is compunded? Or would it be with the annual one too just paid in one sum a year?



It would not be compounded, you would end up with a tiny bit less if you went for the monthly opion, prob to cover the admin charges

tallpete33;8002427

Nationwide 3 year fixed cash ISA 4.40%



I can guarantee you BoE rates will be higher than 4.40% in 1-2yrs time (underlying inflation). Who ever comes in, will have to sort out the mess we are in....otherwise the currency traders will do it for us.

Tom Pickering;8002518

I can guarantee you BoE rates will be higher than 4.40% in 1-2yrs time … I can guarantee you BoE rates will be higher than 4.40% in 1-2yrs time (underlying inflation). Who ever comes in, will have to sort out the mess we are in....otherwise the currency traders will do it for us.



I would be thinking alone the same lines myself, not worth the gamble to lock away for so long.

You can already get 3.5% APR with a guarantee the rate will not be lower than 3% above BOE base rate for the first 12 months, without having to tie up your money for 3 years.

It was 4.7% a few weeks back ...

Tom Pickering;8002518

I can guarantee you BoE rates will be higher than 4.40% in 1-2yrs time … I can guarantee you BoE rates will be higher than 4.40% in 1-2yrs time (underlying inflation). Who ever comes in, will have to sort out the mess we are in....otherwise the currency traders will do it for us.



i doubt that very much - base rates will be below 2% for at least 12 months otherwise we will see another "black wednesday" on our hands....

if rates go up too fast too soon it will supress demand both from inside and outside the UK as well as lead to more respossessions and higher unemployment.

Banned

p19uk;8003456

i doubt that very much - base rates will be below 2% for at least 12 … i doubt that very much - base rates will be below 2% for at least 12 months otherwise we will see another "black wednesday" on our hands....if rates go up too fast too soon it will supress demand both from inside and outside the UK as well as lead to more respossessions and higher unemployment.


I agre. Cant see rates changing much this year, if at all. 3 years is just too long to predict so its a big gamble to lock away for this long.

Original Poster

Tom Pickering;8002518

I can guarantee you BoE rates will be higher than 4.40% in 1-2yrs time … I can guarantee you BoE rates will be higher than 4.40% in 1-2yrs time (underlying inflation). Who ever comes in, will have to sort out the mess we are in....otherwise the currency traders will do it for us.



Agreed the only way for rates to go is up but the B of E will try and resist as long as possible however their hand may be forced with the current weakness of sterling.

Most variable rate ISAs are around 2% currently so the base rates would have to go up a fair bit to match this rate. In the meantime you could be sitting pretty on 4.40% tax free. It's worth considering if you can lock the money in for 3 years.

Banned

tallpete33;8004043

Agreed the only way for rates to go is up but the B of E will try and … Agreed the only way for rates to go is up but the B of E will try and resist as long as possible however their hand may be forced with the current weakness of sterling. Most variable rate ISAs are around 2% currently so the base rates would have to go up a fair bit to match this rate. In the meantime you could be sitting pretty on 4.40% tax free. It's worth considering if you can lock the money in for 3 years.


3.5% variable rate as A&L at the mo

alliance-leicester.co.uk/sav…spx

“Government-run savings organisation, NS&I, has 3 and 5 year Index Linked Savings that pay 1% more than inflation..

It uses the higher measure, Retail Prices Index (RPI) inflation, at 3.7%, meaning it pays 4.7% overall.

The max. deposit allowed is £15,000.

The big bonus is that these savings are totally tax-free, (though it is totally separate to using your Cash ISA - you can have both).



Anyone on basic rate tax would have to be earning 5.88% in a normal savings account to match this.



Worth considering!

Money markets will certainly drive the rate up - perhaps not for another 6 to 12 months, but once it starts to rise it will rise very quickly and go beyond 4.4%. Look at how quickly the rate came down once the recession took hold. So, locking money away for 12 months (absolute maximum of max 18 months) is probably ok, locking away for longer will lose you money. I'd hate to have my ISA "only" earning this sort of rate in some months time when friends are earning more.

might aswell launch your money into shares

Casey2901;8004913

“Government-run savings organisation, NS&I, has 3 and 5 year Index Linked … “Government-run savings organisation, NS&I, has 3 and 5 year Index Linked Savings that pay 1% more than inflation.. It uses the higher measure, Retail Prices Index (RPI) inflation, at 3.7%, meaning it pays 4.7% overall. The max. deposit allowed is £15,000. The big bonus is that these savings are totally tax-free, (though it is totally separate to using your Cash ISA - you can have both). Anyone on basic rate tax would have to be earning 5.88% in a normal savings account to match this.Worth considering!



Thanks for that - rep added:thumbsup:
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