ISA Countdown

aidso

Would i be right in saying that if i opened an ISA account tomorrow and i could deposit £3600 right away and come the start of the tax year in 7 days i would get the full interest of 3% for this year or whatever i choose to go with?
I mean is there a cool off period were you have to havve the account opened for a few weeks?

Lokolo

Depends on the ISA on when interest is paid but no you won't get the full 3% for having money in there for 7 days.

If interest is paid on 6th April you will get 3%/52 (as this makes one weeks worth of interest).

alastair_h

No you wouldn't get 3% of £3,600, you would only get that if it had been in there for a year (and interest rates had remained the same).

You would get 3% of £3,600 / 365 x number of days £3,600 was in your account.

aidso

pfft there was me thinking i was going to make a quick buck

alastair_h

No we'd all be doing it if it was that easy

Baldur

aidso wrote: »

Would i be right in saying that if i opened an ISA account tomorrow and i could deposit £3600 right away and come the start of the tax year in 7 days i would get the full interest of 3% for this year or whatever i choose to go with?
I mean is there a cool off period were you have to havve the account opened for a few weeks?

Wouldn't it be nice of the banks to pay us all 3% for the privilege of having the use of our cash for 7 days.....

As Lokolo says, you earn very roughly one 365th of the interest rate per day - the AER rate assumes that the funds are in the account for a full year.