Confused

chirpchirp

I've noticed that interest on the Santander ISA is paid annually. I can't find when Barclays pay their interest but I know that last year the Barclay's Golden ISA paid interest monthly which allowed the amount to compound.


If I'm correct in assuming the Golden ISA is monthly and the Santander is annually, does the Santander still outweigh the Golden ISA?

Also, have I read the Santander site correctly? If I apply online I get a lower rate than if I go into the bank and open an account? It appears they have two different ISA's the flexible ISA which is the better one which you need to go in for and the Direct ISA which you apply online for but the interest rate is lower.

Baldur

chirpchirp wrote: »

I've noticed that interest on the Santander ISA is paid annually. I can't find when Barclays pay their interest but I know that last year the Barclay's Golden ISA paid interest monthly which allowed the amount to compound.

If I'm correct in assuming the Golden ISA is monthly and the Santander is annually, does the Santander still outweigh the Golden ISA?

Monthly or annual payment is, to all intents & purposes, irrelevant - the AER quoted is the best comparison. Rates are calculated daily and paid either monthly or annually, so compounding applies in either case.

Also, have I read the Santander site correctly? If I apply online I get a lower rate than if I go into the bank and open an account? It appears they have two different ISA's the flexible ISA which is the better one which you need to go in for and the Direct ISA which you apply online for but the interest rate is lower.

You could apply online or in-branch for the Flexible ISA until the last day or two - they have obviously been swamped by applications and have now restricted applications to in-branch ones.

natman

Hi,
According to Moneyfacts the Barclays pays interest monthly -
http://moneyfacts.co.uk/compare/savings/accounts/best-sellers-savings/ click on the details of the ISA. Also Straight from the Barclays website this is also indicated -
Golden ISA - Issue 2 6 is a cash ISA that pays 3.10% AER/3.06% tax-free pa1 - interest rate is variable and interest paid monthly

Most banks etc have to show an AER, Which is generally the rate to go of when comparing with other banks.


Basically 3.10% AER is less than 3.50%
Santander indicate the following - Guaranteed minimum rate - of 3.50% AER* tax free (variable) for 12 months