Fixed Rate ISA's and Interest

sheslookinhot

Is it normal for interest on FRISA's to be added at the end of the term, whether 2, 3 or 4 years ?

I have just received a statement from M&S after year 1 of a 3yr Fixed ISA and the balance is the same as that deposited.

Thanks

blueberrypie

Yes, some fixed-rate ISAs pay interest once a year on a specific date or on the anniversary of opening, but some pay the interest in full at the end of the term.

You aren't losing out - regardless of how the interest is paid, the rate is provided as AER, so there's no difference between 4% for 4 years paid annually and 4% for 4 years paid at the end of the term.

McKneff

Maybe its just M & S

I have a 2 year fixed with Halifax and got my statement with my first years interest on it.

Maybe give them a ring tomorrow.

Ifts

If you are referring to the M&S Fixed Rate Savings Issue 9 (Cash ISA), which quite a few of us subscribed to last year, then I would say that the Interest should be added to the ISA annually on the anniversary of account opening.

According to M&S FRISA Issue 9 Terms and Conditions:

7 (iii)

Interest will be calculated daily on the balance of each Fixed Rate Bond you hold. Annual interest as at the anniversary of the Start Date, or the next working day if the anniversary of the Start Date is a non working day, will be credited to each Bond within 30 days following the annual anniversary. Alternatively you can instruct us on application to have interest paid out to your nominated bank or building society account.

Also discussed in this thread from last year: M&S Money 4% ISA (on page 4, posts 65 & 66 refer to when interest is paid)

M&S savings phone number if you need it: 08080 022 222

Stompa

Ifts wrote: »

If you are referring to the M&S Fixed Rate Savings Issue 9 (Cash ISA), which quite a few of us subscribed to last year, then I would say that the Interest should be added to the ISA annually on the anniversary of account opening.

Yes, that's correct. My first lot of interest was added on the first anniversary in January. Today I also received what is presumably an 'end of financial year' statement which doesn't show any additional interest.

Ifts

I also received my 3 year fixed rate Isa statement today.

The statement covers transactions for the period 6 April 2010 to 5 April 2011.
It is only showing my opening deposit dated 14 April 2010 as the balance because the 1st years interest is added on the anniversary date of my first deposit (14-04) which is outside the dates that this statement covers.

david78

I get an annual statement on the anniversary on my M&S FRISA (4.0% 3 year).

You can always telephone them and check the interest you have earned.

mersey

I also recieved a statement from M&S this morning,after year one of a 3 year fixed ISA,with no interest.After phoning to enquire,I was told the interest and they will send me a new statement,looks like someone has cocked up somewhere.

SallySunshine

I also have received a statement but since I didn't open it until 13th April there is no interest added yet.
Guess next year it will show it.

Stompa

SallySunshine wrote: »

I also have received a statement but since I didn't open it until 13th April there is no interest added yet.
Guess next year it will show it.

I suspect you'll hear from them very soon. I received notification of my annual interest about a week after the due date.

SallySunshine

Just got another statement in the post today. interest is added.