Working out interest on Halifax ISA

Philip624

I transferred my ISA from First Direct to Halifax on 25 October 2005. At that time it was £4121.15, now it is 4346.15. I am unlikely to add any more before the end of the tax year. How can I work out my interest?

My FD ISA was 6.25% paid monthly but the Halifax is 5% paid annually. When the transfer from FD to Halifax was made would FD have informed Halifax of the amount of interest I had received monthly from them and would this amount not count for my annual interest from Halifax. I am thinking that otherwise I would be earning interest on interest already paid.

alared

FD would have transferred the total balance as at 25/10/05 including any interest.
Halifax will pay you interest on that full balance up to April 5th this year.
Then it starts all over again on the balance from 6th April.
On the 6th April onwards you have the choice of adding to your Halifax ISA or opening another one with a different provider and also keeping your Halifax one.
IMO Halifax direct ISA is one of the best around so adding to this next tax year would be the best option.

regularsaver1

You can call halifax and ask how much interest has accrued to date

codetown

you usually don't need to calculate anything.
First Direct have done the calculation of the daily interest you gained with them and added to your total up to the date you asked transfer of the account.
I assume this total sum on the 25 October 2005 was 4346.15 (which included your contributions plus any interest accrued up to then).

Then they passed to Halifax the funds available (i.e. 4346.15) telling them that this was your past ISA amount and from the 26 october 2006 (or likely 28) that sum has started gaining interest on the Halifax rate in halifax.
In an ISA the interest you gain does not count against the maximum yearly investment you can make. So, it is still 3000 pounds per year you can add in independently from what you earned in the past.

If you are just curious to know what you gained up to now, a 5% interest on 4346.15 pounds gives you 217.3 pounds a year, which is about 60 pence a day.