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ISA Interest

Hi there.

Can anyone tell me if you get interest on your interest in an ISA account, so if you start with £3600 month one you get £5 interest, in month 2 is it calculated on £3605??

Regards
Steve

Comments

  • Hi there.

    Can anyone tell me if you get interest on your interest in an ISA account, so if you start with £3600 month one you get £5 interest, in month 2 is it calculated on £3605??

    Regards
    Steve

    Depends if it is payed (interest) monthly, six monthly or yearly.
    I used to have a signature but it disappeared and I just couldn't be bothered writing another, so please feel free to ignore this.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Hi there.

    Can anyone tell me if you get interest on your interest in an ISA account, so if you start with £3600 month one you get £5 interest, in month 2 is it calculated on £3605??

    Regards
    Steve

    As Brian says, it depends. If interest is paid monthly then yes, if annually, then no. But usually if a bank offers monthly and annually, the bank will lower the monthly rate to make both interest from montly and annually be the same over the whole year (AER).
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