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First Direct Cash ISA Rate

Hi there,

For First Direct's Cash ISA it lists a variety of interest rates depending on how much money is in your ISA.

Balance AER Tax free
£1 - £4,999 1.30% 1.29%
£5,000 - £9,999 1.50% 1.49%
£10,000 - £19,999 1.70% 1.69%
£20,000 - £39,999 1.85% 1.83%
£40,000 and over 2.00% 1.98%

My question is, do these rates apply to the entire amount of money in your ISA if you hit a new bracket, or just to the amount of money that's in that bracket?

E.g., if you have £5500 in your ISA would you get all interest at 1.5% or would you get £4,999 at 1.3% and the rest (£501) at 1.5%?

Thanks for your help!

Comments

  • Ed-1
    Ed-1 Posts: 4,021 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    slhqoue wrote: »
    Hi there,

    For First Direct's Cash ISA it lists a variety of interest rates depending on how much money is in your ISA.

    Balance AER Tax free
    £1 - £4,999 1.30% 1.29%
    £5,000 - £9,999 1.50% 1.49%
    £10,000 - £19,999 1.70% 1.69%
    £20,000 - £39,999 1.85% 1.83%
    £40,000 and over 2.00% 1.98%

    My question is, do these rates apply to the entire amount of money in your ISA if you hit a new bracket THIS, or just to the amount of money that's in that bracket?

    E.g., if you have £5500 in your ISA would you get all interest at 1.5% or would you get £4,999 at 1.3% and the rest (£501) at 1.5%?

    Thanks for your help!

    Whole balance.
  • jimjames
    jimjames Posts: 19,258 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    If you have £5500 then an ISA is not a good place to get the best rates when 5% available outside.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • slhqoue
    slhqoue Posts: 150 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    Could you clarify? What do you mean 5% available outside?
  • Ed-1
    Ed-1 Posts: 4,021 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    slhqoue wrote: »
    Could you clarify? What do you mean 5% available outside?

    Current accounts. TSB Plus pays 5% on balances up to £2000 and you can have 2 of these accounts. Nationwide FlexDirect pays 5% on balances up to £2500 for 1 year.

    Both of the above require you to meet certain conditions such as paying in £500/£1000 a month.
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