NS&I Cash mini ISA

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
4 replies 1.1K views
Rusty_CageRusty_Cage Forumite
2 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hi,

I have an NS&I Cash mini ISA with about £250 in. If I were to put say £2000 in the ISA now would I still make the same amount of interest as leaving it until closer to the end of the tax year to invest? Or is the interest also calculated monthly?

I have several thousand in Premium bonds and would like to keep them for the chance of winning :cool:, but I would also like to earn some interest.

Replies

  • Interest is earned daily and credited on the eve of April 5th. So the sooner you put the money in, the more tax free interest you get. You may be confused as to the maximum amount you can put in. This is £3000 per annum before April 5th each year. After this you get another allowance of £3000 to deposit for next tax year. If you take out money you eat into what you can put back, a strange regulation. Eg deposit £1500, take out £500 you can only deposit a maximum of £1500 more making the total £2500. The withdrawal of £500 comes off the allowance that you can deposit.

    It is a tricky balancing act with premium bonds. I would condider them only worthwhile once all other tax free investment options are used up. Many others swear by them or swear at them every month.
    J_B.
  • jamesdjamesd Forumite
    24.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper
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    Premium Bonds are a great way to lose money. :) Their prize fund is 3.15% from 1 September and even a higher rate tax payer only needs to earn 5.25% interest to beat that. Not hard at all unless you want to stick to only instant access accounts.
  • Cheers, boys. I'll invest asap.

    My mom has just bought £30,000 in Premium bonds; which I'll be checking for her each month ;), so I'll get my monthly 'buzz' from her bonds :D .
  • hansihansi Forumite
    3K Posts
    Part of the Furniture 1,000 Posts
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    Has anyone had problems in getting a password? I opened my ISA on 5th August online, and got acknowledgement in the post. But I didn't get a password so I rang them and they said they had sent one but would now cancel it and send another, whuch again, I have not received. Any idea how long it takes, I don't want to ring them again, otherwise they will cancel that one and send a new one, and so on....................
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