Interest question

RobH_5

Hi all,
I'm looking at transferring my cash ISA from NS&I to Icesave and there are a couple of things I wasn't sure about:
1) If I move my money out of the NS&I isa, will I still get the interest I would have earned since April?
2) The Icesave isa gives a choice of receiving interest monthly or annually, and I just wanted to check whether there's any drawback from choosing monthly. I've copied the rates from their website below:

amount deposited £1000+
gross pa* paid annually 6.10%
gross pa* paid monthly 5.94%
AER* 6.10%

3) By my reckoning, I might gain about £50 this year by switching; is that worth the hassle?

Thanks

Rob.

tiptoe_mouse

RobH wrote: »

Hi all,
I'm looking at transferring my cash ISA from NS&I to Icesave and there are a couple of things I wasn't sure about:
1) If I move my money out of the NS&I isa, will I still get the interest I would have earned since April?
2) The Icesave isa gives a choice of receiving interest monthly or annually, and I just wanted to check whether there's any drawback from choosing monthly. I've copied the rates from their website below:

amount deposited £1000+
gross pa* paid annually 6.10%
gross pa* paid monthly 5.94%
AER* 6.10%

3) By my reckoning, I might gain about £50 this year by switching; is that worth the hassle?

Thanks

Rob.

1)Yes. If you opt to transfer the whole of the balance of your NS&I ISA it will be included by NS&I in the amount of the transfer cheque. If you do a partial transfer then all interest will be added to the amount remaining in the old iSA next April.

2)As the AER is the same, and there's no tax issue to worry about, you will get the same amount either way. That's as long as you don't withdraw the interest every month.

3)Transfers to Icesave seem to have a good record of going through smoothly, see this thread:

http://forums.moneysavingexpert.com/showthread.html?t=989937

So it's not too much hassle. Plus if the difference in rates remains the same, you will be making an extra £50 every year. I'm going to transfer to Icesave myself and I reckon it's worth it.

tiptoe