Isas: is fixed rate or easy access better as interest rates rise?

theguardian.com:

Interest rates went up again this week, leaving those planning to stash some money in a cash Isa facing a choice. If they want a (slightly) better interest rate – up to 1.9% at the time of writing – a fixed-rate Isa may be the way to go.

However, these involve tying up your cash at a set rate, often for several years, which might feel like an odd thing to do in the current uncertain climate, and when interest rates are marching upwards.

Easy-access Isas give you more flexibility and, in theory at least, might benefit from any savings rates increases that banks deign to pass on, but the rates right now are lower: the highest this week were around the 0.8% mark.

Nevertheless, one of the most popular deals is likely to be the easy-access cash Isa from Marcus, the Goldman Sachs online banking brand, which was this week paying a variable 0.7% (this includes 0.1% interest bonus fixed for the first 12 months).

You haven’t got long to make use of your 2021-22 Isa allowance. These accounts let youprotect the returns on your savings from tax.

There are several types, although the two main ones are the cash Isa and the stocks and shares Isa. During the current tax year you can save up to £20,000 in one type, or across two or more.

You have until midnight on 5 April each year to add money, and the allowance each year does not carry over.

Some experts argue that the introduction in 2016 of the personal savings allowance means there is not much point in having a cash Isa. This allowance means basic-rate taxpayers can receive £1,000 of interest each year without paying any tax, while higher-rate taxpayers can receive up to £500.

But Isas still have their supporters, who say people should make use of the existing rules while they can. Some