Bradford & Bingley: annual v monthly interest payments?

hobbsy_3

( Apologies in advance if this is a stupid question )

I'm about to open a Bradford and Bingley eSavings ISA (the 5% interest one), but on the application form it says:

When do you wish to receive your interest payments?
- Annual
or
- Monthly

Do it matter which option I choose?

Are there any advantages to either option, or will both options give me the same return at the end of the tax year?

(I've ticked the box for any interest to be credited back into the eSavings ISA account)

Mr_Mumble

The annual option has a guarantee to, at least, match the base rate (currently 4.5%) until June 2007. The monthly option doesn't seem to have this guarantee.

The return will be very similar given both have 5% AER. There is a very slight difference in total paid out (check out the posts by MSJW in the Annual Interest v Monthly Interest thread for why annual will pay a few more pence).

Note: the annual option credits interest on July 31st, not at the end of the tax year.

Trying_to_save_for_flat.

Hiya! I have also got confused over this option. As it is now September would I need to wait until next July 31st for me to receive any interest?
This worries me as by then I may have found a new high interest ISA to transfer to in the new tax year.

hot_chick_2

If you decided to transfer before July,they would add your interest up to the date of any transfer.