Halifax Fixed Rate Regular Saver + Alliance & Leicester’s Premier Direct accounts

Belfastman_2

Forgive me is this is a stupid idea...I'm new to all this

Does anyone know how long you have to keep your money in either of these accounts before the interest is paid? Is it paid in monthly? The reason for asking is I had the idea of paying in the required amount every month up until the end of the financially year then transferring the money into my isa (which I am about to open up) therefore getting interest twice on the same money in the same year.

Any replies greatly appreciated.

MPH80

Erm - the problem with this is that interest is normall calculated daily. So if the money isn't in the account - you won't get interest on it.

So - if you put the money in A&L until 5th April - then transfer to the ISA - you'll get the interest from A&L up until 5th April - then the ISA will start to accrue interest from that date on.

M.

Belfastman_2

Right so if the interest is calculated daily does that mean it is paid into the account daily too? If so then is it not possible to do what I was suggesting?About the ISA... If I have £3000 and put it into the ISA now come the 5th of April do just get the interest from now until that date or do I get interest for the full financially year?

danield

Interested is usually calculated daily and credited monthly or yearly. The interest rate quoted by the account provider is based on the money being in the account for a year.

Because it is calculated daily, you will only get interest on the money that you have in the account for the length of time it is in there for.

Put £3000 in an ISA between now and April and you'll get roughly a quarter of the interest you'd have got were it in for the whole year.

Hope this clarifies it for you.

regularsaver1

Yeah so you make twelve payments into a regular saver - the first month will stay there for the full year giving that a full years interest, but the last month would only stay there for a month - as the other posters say on a daily basis

It seems a lot of people "save up for their isa's" - but they would possibly gain more if they left it in the isa for longer.

jimclark1967

regularsaver1 wrote:

It seems a lot of people "save up for their isa's" - but they would possibly gain more if they left it in the isa for longer.

It depends where you're saving the money. If you can get 10% gross that's still 8% net for basic rate taxpayers for 1 year then move the funds into an ISA.

If it means missing a year's worth of ISA allowance then you need to decide whether the extra interest in the short term is worth losing out on many years of tax free interest in an ISA.

I'll be funding 2006/7's ISA with the proceeds of my 10% regular saver account which will spit out a nicely timed £3,000+ in March 2007 :beer:

JC