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Monthly interest ISA's?

I am sorry if this was asked before, but I was wondering if there is a good ISA that will pay interest monthly without compromising too much on the rate? I am quite new to this, but understand that if the money is going to be taken out over the tax year, interest paid monthly may not hurt the amount accrued at all!? I would prefer an internet option to save the running around!Any advice would be much appreciated!

Tanja

Comments

  • Mr_Mumble
    Mr_Mumble Posts: 1,758 Forumite
    Hi Tanja, welcome to the MSE chat forums!

    If the AER (Annual Equivalent Rate) is the same for monthly and annual options, as they usually are, then the amount of interest paid out on a cash-ISA should be the same.

    The Bradford & Bingley eSavings ISA seems to have all your needs (monthly interest, easy access, internet based) covered and pays 5.55% but the minimum balance is £1,000. If you're likely to have a smaller balance at any time then the Intelligent Finance mini-cash ISA seems to be the next best option at 5.35%.
    "The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.
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