Santander interest paid?

andy013

Hey, I've got an isa with Alliance and Leicester, now Santander and I got my interest paid on the 2 March. Apparently my rate is guaranteed to be 2.70% above the Bank of England base rate for 12 months.

I opened my account on the 19/04/10 so I should still have my good rate until 19/04/11, right?

I'm just curious as to why I've been paid my interest now, and what will happen if I transfer in April, will they pay me the extra little bit of interest I am owed?


Thanks
Andy

blueberrypie

You've been paid on March 2nd because that's how your ISA works. The Direct ISA, Easy ISA, Flexible ISA - all work this way, and you'll find the following on the product description page at Santander's website: " Interest is calculated daily and paid each year after close of business on 1st March."

If you do not transfer the funds out of the ISA when your rate drops in April, you will receive further interest on March 2nd next year - but you will only earn interest at a lower rate after April 19th.

If you transfer your funds out of the ISA before then, interest will be calculated up to the date of transfer and applied just before the transfer.