Best Fixed Rates (Cash ISAs or Bonds)

[Greenmantle]

Every other day I check up on Savings Champion.

How come all the best rates are by the "New Kids on the Block" / Challengers?

I maybe old fashioned but I find it very hard stuffing £20K into one of these organisations when I read up about the PITA issues that occur. How come the old guard Building Societies don't offer decent rates?
Surely they need the money unless no one is borrowing at the moment?

[Lardydah]

I guess it depends on how much each institution needs money at the moment. If the old guard are attracting enough deposits to fund their lending they're probably more than happy with the rates they have. On the inverse, the challengers probably want to rapidly increase market share/take from the old guard, so are pricing accordingly to attract customers.

If the tax-free element of an ISA is important to you (and you're happy to lock in/hold to maturity) then gilts are not a bad shout at the moment...

[Greenmantle]

Lardydah said:

I guess it depends on how much each institution needs money at the moment. If the old guard are attracting enough deposits to fund their lending they're probably more than happy with the rates they have. On the inverse, the challengers probably want to rapidly increase market share/take from the old guard, so are pricing accordingly to attract customers.

If the tax-free element of an ISA is important to you (and you're happy to lock in/hold to maturity) then gilts are not a bad shout at the moment...

Would like to know more about gilts. Are these the good old fashioned government debt or are these corporate debt which I wouldn't be interested in. Do you have a go to place?