When do you get interest from ISAs?

Jigsawn

Hi there,

Bit of a newbie question!
I'm a new saver, I have got a chunk of money that I want to save, and looks like a cash ISA is the best bet. But I'm not sure when ISAs allocate you interest. Is it only once a year? Every month? Or daily? Does it happen relative to the date you open an ISA or on the 1st of a month for example.

Thanks for any help.

opinions4u

Jigsawn wrote: »

I'm a new saver, I have got a chunk of money that I want to save, and looks like a cash ISA is the best bet. But I'm not sure when ISAs allocate you interest. Is it only once a year? Every month? Or daily? Does it happen relative to the date you open an ISA or on the 1st of a month for example.

It depends on your provider and the ISA product you take.

For example, Halifax pay most of their interest on 5th April (last day of the tax year) but on a fixed rate ISA they pay it on the maturity of account opening, which can be any time of the year.

If the provider wished to pay interest on 3rd Jan, 17th March and 4th October each year, they could if they wanted too!

Paul_Herring

Is it only once a year? Every month? Or daily? Does it happen relative to the date you open an ISA or on the 1st of a month for example.

Any of the above (with the possible exception of daily.) It depends on the provider.

In this respect (when interest is/should be paid,) an ISA is no different to an ordinary savings account.

david78

opinions4u wrote: »

For example, Halifax pay most of their interest on 5th April (last day of the tax year) but on a fixed rate ISA they pay it on the anniversary of account opening, which can be any time of the year.

Not quite. Halifax pay interest on fixed rate ISAs when the account matures. So if you open a four year fixed ISA bond with them you get all the interest at the end of the four years. Of course, what you say is correct for a one-year term.

Jigsawn

Thanks everyone, guess I will have to shop around to find the one that best suits me!

savetilibleed

Jigsawn wrote: »

Thanks everyone, guess I will have to shop around to find the one that best suits me!

If you should happen to need interest to be paid out to you monthly, and you are over 50 then there is a
SAGA 1 year fixed rate ISA paying 2.91% for the monthly option or 2.95% for interest paid at maturity.

If you don't need the monthly interest there are better deals around, Barclays, NatWest, Lloyds, and others see HERE