Santander ISA 2012-2012... something fishy....

vienly

I applied for the new Santander Direct Cash ISA 3.3% 2012-2013 and they have emailed me the documents, I've read their 'Savings User Guide - SAV 0463' and in the ISA section it says interest paid on

"Annually
after close
of business
on 1 March".

Shouldn't they be paying the interest in April, if they pay it in March that would mean that is 1 whole month of missing interest, or am I wrong?

That would mean Santander is only paying 11 months worth of ISA interest instead of 12 months?

If that is the case I may aswell stay with Halifax's 3%

Mikeyorks

vienly wrote: »

Shouldn't they be paying the interest in April, if they pay it in March that would mean that is 1 whole month of missing interest, or am I wrong?

Wrong, I'm afraid. Whilst most use the end of the tax year as a convenient point - some use March / August or the anniversary of account opening.

In your case the 'missing' interest will continue to accrue normally and be paid at the next 1st March. Or when you close / transfer the account - whichever comes first.

badger09

vienly wrote: »

I applied for the new Santander Direct Cash ISA 3.3% 2012-2013 and they have emailed me the documents, I've read their 'Savings User Guide - SAV 0463' and in the ISA section it says interest paid on

"Annually
after close
of business
on 1 March".

Shouldn't they be paying the interest in April, if they pay it in March that would mean that is 1 whole month of missing interest, or am I wrong?

That would mean Santander is only paying 11 months worth of ISA interest instead of 12 months?

If that is the case I may aswell stay with Halifax's 3%

Nothing fishy. Different banks pay interest on different dates
If you leave the ISA with Santander**, they will pay interest every year 'after close of business on 1 March. If you close the ISA, or transfer it to another provider, they will calculate interest from 2 March to that date.

** you probably won't want to leave it in the same place for too long as the rate will probably plummet like a stone after the first year :eek:

ejv

vienly wrote: »

it says interest paid on

"Annually
after close
of business
on 1 March".

Interest is calculated DAILY but paid annually(occasionally monthly)