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New to ISA's....need help and advice

Hi moneysavers,

I have seen on the site that there are about 49 days left to set up an ISA for this financial year.

I am on the verge of coming into some money, not a lot by many people's standards (a hell of a lot for me) but enough to put £3600 into an isa account for the year.

Am I right in assuming, that if I put that money into an isa account before April 6th 2009, lets say 31st March, I would be entitled to all the interest that I would have got had I put my money into an ISA at the start of the financial year? If this is the case would I be able to withdraw it all on the 7th April 2009 with the full entitlement.

The money I have mentioned would clear my credit card debts and overdraft but I thought if I could make a little extra cash from the interest in such a short space of time, then it would be worth my while.

Can I have your thoughts please moneysavers....

Many thanks.

Comments

  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Of course not. You get interest depending how long you keep the money in there.

    So if you put money in for 4 days, you get 4 days interest. If you keep it in for the year you get a years interest...
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Adsuk wrote: »
    Can I have your thoughts please moneysavers....
    Dream on! ;)

    You earn interest daily, at approx 1/365th of the annual rate. You save money for 49 days and you receive 49 days worth of interest, ie 49/365ths.

    Think about it...if it worked as you thought, then no-one would open an ISA until the end of the financial year.
  • JoeCrystal
    JoeCrystal Posts: 3,385 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If I was you, I would clear all credit card debts and overdraft for they will be painful in long run. As for ISA, no, you will only get the interest calculated on daily basic I think.
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