short term savings in ISA with annually-paid interest

ricklecoat

I'm looking at opening a mini cash ISA (first time delving into ISAs of any kind) as a way of storing some money that resulted in the sale of a property. Sometime in the next year the chances are high that I will need to withdraw the money to use it as a deposit on a new property.

SO: say I pay £3000 into an ISA that pays its interest annually but withdraw the whole lot after (say) 10 months, where does that leave my interest? Do I then have an empty ISA for 2 months which then suddenly acquires 10 months' worth of interest at the end of Month 12?

Maybe I'd be better finding an ISA that pays interest monthly, but the majority of the good ones seem to be annual.

Debt_Free_Chick

You need to check the T&Cs but most ISAs will add 10 months interest on when you close the account. So you should receive £3,000 plus the interest.

HTH

ricklecoat

Thanks for your reply.

Yeah, I've looked at the T&Cs (online ones, at least) for all the ISAs I'm interested in, but none of them go into quite that level of specific detail (I guess they can't cover everything or the T&Cs would be like War & Peace).
They just specify that money earns interest until the day that it is withdrawn. They state whether interest on the account is, in general, paid monthly or annually, but not what happens if you empty the account before the year is up.

grumbler

ricklecoat wrote:

...They state whether interest on the account is, in general, paid monthly or annually, but not what happens if you empty the account before the year is up.

If you just withdraw money interest will be added in the time due. If you close or transfer the ISA interest is added when you do this.