An ISA before the budget

Nonnie.I already have those accounts that give 3%, 5% etc, but those upper limits are way too small to be useful.
The ISA will be £20,000 and can get at the money with an interest penalty. Already have 2 other ISAs with same building soc, those are at 2.3%
Otherwise the money would just be sat doing nothing in Santander at 1.5% and at the earning limit anyway.
I like 5 yr ISA products, they pay better than any other ISA product and bank account limits are too restricted, £1500 and 2500, 5000 etc.
Have a 5 year fixed rate bond too at 2.7% but that stays put for 5 years, tax relief will not be an issue with it.
Also 3 stocks n shares ISAs taken out when ISAs first came out and of course these are in for the long run.
So hopefully a varied and resilient mix.

PS if the rates rise, no problem cashing in an ISA and opening another, penalties are small enough.

mcem.
I can empathise! Young gens make it feel like you are nagging when you are only trying to help.

I' m pushing my GD to get her matured junior isa transferred into a help-to-buy isa. She plans to do this but 'hasn't got round to it yet'. On a recent trip to the bank I was told
that they are likely to be phased out in the near future!

I don't think interest rates will be dropped and I don't think he has the power to do it. I think it is the job of the Governor of the Bank of England.

Martin Lewis thinks that locking money up for 5 years is a bad decision at the moment because he thinks rates will rise during that time. In the short term 2.1% is not bad and its tax free but unless you earn more than £1000 a year in interest there is no benefit. However if you believe that savings may become taxable in the future or that ISAs will be stopped then maybe you want to keep it.

The best rates at the moment seem to be for regular savings where you can get up to 3.5% or more if you bank with certain banks although they do have an upper limit.