We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Fairly basic question on annual interest
sjwk
Posts: 10 Forumite
Say I have an ISA that, for example, advertises it only pays interest on 1st March each year. I close the ISA on 1st April a year after opening it. What happens with the interest that had accrued in the final month in between their annual payout and my closing the account?
I'm assuming I don't simply lose it? But do the bank then calculate and pay the interest at the point when I close the account? Or do I need to leave the account open with £1 in it for another 11 months so that the interest gets paid?
Just wanting to check...
Steve.
I'm assuming I don't simply lose it? But do the bank then calculate and pay the interest at the point when I close the account? Or do I need to leave the account open with £1 in it for another 11 months so that the interest gets paid?
Just wanting to check...
Steve.
0
Comments
-
When they close it they will add another months interest.
In this case it will be 31/365ths of the annual figure because there are 31 days in March.
The name for it is "pro-rata".0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.8K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.4K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards