Best returns from your ISA

idv · 1 April 2005 at 10:42AM

Is it worth put any extra money you may have to temporarily prop up your ISA before next tuesday (April 5th) to gain the maximum amount of interest ??

E.G

If you have saved £1500 in your ISA you would recieve around £75 at 5%.

However if I just topped this up temporarily before April 5th to £2000 I would recieve £100 interest.

Then after the interest is paid on April 6th, take out the £500 wou was'nt planning to invest in the ISA along with any interest you have made.

I would appreciate your views...

carnet · 1 April 2005 at 10:50AM

Interest is, like all other savings accounts, calculated on the length of time the capital has been in the account. If its only been in a few days, you only get a few days interest.

If you put in an additional £500 for, say, 5 days, at 5% per annum interest you are looking at 34 PENCE interest.

deemy2004 · 1 April 2005 at 5:08PM

idv wrote:

If you have saved £1500 in your ISA you would recieve around £75 at 5%.

However if I just topped this up temporarily before April 5th to £2000 I would recieve £100 interest.

Then after the interest is paid on April 6th, take out the £500 wou was'nt planning to invest in the ISA along with any interest you have made.

Would be great if it was so !

Does not work thay way with ISA's are 'MOST' other accounts. As interest is calculated on a daily basis on the days closing balance and then added to the account either annually or monthly depending on the type of account.

isasmurf · 2 April 2005 at 2:38PM

If you have extra money at the end of the tax year and you haven't used up all your allowance what is there to lose by putting it in the ISA anyway, whether it is temporary or not. When you need it you can take it out again.

dirtyred619 · 2 April 2005 at 5:47PM

I was just thinking this same queston earlier today as I have got almost all of this years allowance still to use before the 5th as I've been saving up a deposit for a house. What kind of interest would £2900 make me when the interest is added on the 5th? Like you say isasmurf, what harm can it do to have it in the account even if it is only temporary?