Fixed Term accounts- daily or annual interest

RobStaffs

One of the questions when setting up my three year Yorkshire Savings account is do you want interest added annual to the capital account or daily..Do this make any difference on the basis that I cant access it for three years?

alanq

RobStaffs wrote: »

One of the questions when setting up my three year Yorkshire Savings account is do you want interest added annual to the capital account or daily..Do this make any difference on the basis that I cant access it for three years?

Yorkshire Bank or Yorkshire Building Society?

I don't know of any bank that will credit interest daily. They may calculate it daily but it will only be added to the account (and begin to be compounded) at monthly intervals or longer.

Different timing for payment of interest may be significant if it reduces the tax due.

Although no access to the capital is possible it may be that interest can be paid into another account during the 3 years.

RobStaffs

alanq wrote: »

Yorkshire Bank or Yorkshire Building Society?

I don't know of any bank that will credit interest daily. They may calculate it daily but it will only be added to the account (and begin to be compounded) at monthly intervals or longer.

Different timing for payment of interest may be significant if it reduces the tax due.

Although no access to the capital is possible it may be that interest can be paid into another account during the 3 years.

Yorkshire Bank..These are the two options that I have been given .I got it wrong with the daily interest bit.

Interest Capitalised and Paid at Maturity
Interest will be credited to the Account on the Maturity Date (unless you advise us differently) or when the Account is closed, if earlier. Interest will start accruing on the Deposit from the Commencement Date and will be calculated on a daily basis, up to and including the last Business Day before the Maturity Date on the full credit balance which has been Cleared for Use on the Account.
Annually Capitalised InterestInterest will be credited to the Account on each anniversary of the Commencement Date and on the Maturity Date (unless you advise us differently) or when the Account is closed. if earlier. Interest will start accruing on the Deposit from the Commencement Date and will be calculated on a daily basis, up to and including the last Business Day before the anniversary of the Commencement Date on the full balance which has been Cleared for Use of the Account.

alanq

The account is discussed here: https://forums.moneysavingexpert.com/discussion/3587475