Golden ISA - Barclays....

woody252506

I am in the process of saving for a house with my partner.

I have noticed Barclays are offering a Golden ISA where you can save up to £3600 per tax year tax free.

The rates are 3.61% AER / 3.55% tax-free pa variable with interest paid monthly.

Ill be saving for another 3/4 months as then we'll have a 15% deposit fingers crossed. I am looking to gain an extra few quid over those months so this ISA caught my eye.

Am i right in thinking that ill get 3.61% interest paid on the £3600 i put in each month, so around £129 per month??? That seems quite a lot to me!!!

Any advice would be appreciate, I have never had an ISA before so am not too sure how it works!

Thanks

:cool:

Baldur

woody252506 wrote: »

The rates are 3.61% AER / 3.55% tax-free pa variable with interest paid monthly.

Ill be saving for another 3/4 months as then we'll have a 15% deposit fingers crossed. I am looking to gain an extra few quid over those months so this ISA caught my eye.

Am i right in thinking that ill get 3.61% interest paid on the £3600 i put in each month, so around £129 per month??? That seems quite a lot to me!!!

NO - AER means ANNUAL interest rate. The £3,600 is your Cash ISA allowance PER YEAR, not per month. You would earn approximately one 365th of 3.61% (assuming that the rate doesn't change over the full year) per day on the only deposit of £3,600 that you are permitted to pay into a Cash ISA per tax year.