ICICI and Icesave question

moneylover

I have an ICICI account and am comparing it with Icesceave in terms of interest. I know that it is AER that is the important rate to look at. ICICI pay their interest monthly but if I leave the interest in the account am I right in assuming that at the end of the year I will have the same total amount of money as if I had picked the interest paid annually option in Iesave?
Many thanks!

anniecave

yes - assuming they are the same rate - which I think they are both at 5.45%

lowbrim

Icesave rate increased from today

Icesave Interest Rate Increase

Following the decision by the Bank of England to increase the Base Rate by 0.25% on 9th November, we are pleased to announce that the interest rate on your Easy Access account has increased by 0.25% from 5.20% to 5.45% gross p.a.¹ / AER² from Wednesday 15th November 2006 on all account balances in excess of £250.

jertzy

lowbrim wrote:

Icesave rate increased from today

Icesave Interest Rate Increase

Following the decision by the Bank of England to increase the Base Rate by 0.25% on 9th November, we are pleased to announce that the interest rate on your Easy Access account has increased by 0.25% from 5.20% to 5.45% gross p.a.¹ / AER² from Wednesday 15th November 2006 on all account balances in excess of £250.

Sorry if I sound a bit thick, does this mean that this Easy Access account probably earns more that a Mini Cash ISA?, would I be better transferring out of my ISA into this?

Thanks

Kilty_2

No, NS&I provide their Direct ISA at 5.55% tax-free; interest on these savings accounts is taxed at 20% or 40% depending on your tax status.

DocProc

Just in by e-mail:

Icesave Interest Rate Increase

Following the decision by the Bank of England to increase the Base Rate by 0.25% on 9th November, we are pleased to announce that the interest rate on your Easy Access account has increased by 0.25% from 5.20% to 5.45% gross p.a.¹ / AER² from Wednesday 15th November 2006 on all account balances in excess of £250.

Terms and Conditions Change

Please note the following change to our standard Terms & Conditions, effective 30 days from the date of this e-mail.

Withdrawing money from your Icesave Account

Existing
5b.Funds deposited electronically by you will be available for withdrawal from the next business day.

Revised
5b. Funds deposited electronically by you will be available for withdrawal 7 business days after receipt of your deposit.

All other terms and conditions of the account remain unchanged.

Yours sincerely

Simon Healy
Head of Savings

Important information

1.Gross p.a. is the rate of interest payable to eligible non-tax payers, without the deduction of lower rate tax.

2.AER stands for Annual Equivalent Rate and illustrates what the interest would be if interest was paid and compounded once each year. 5.45% gross p.a. / AER is the rate payable when interest is paid annually. 5.32% gross p.a. / 5.45% AER is the rate payable when interest is paid monthly.

https://www.icesave.co.uk