help with savings question

worcester1

Can someone help me on an Isa question?

When is the interest on an Isa account paid? Is it at the end of each month (on whatever you've saved until then) or at the end of the financial year (on the full £3000)

I currently have a Halifax regular saver (7%) which ends in June07 with £3000 + £80 interest. I wish to save the full £3000 into a Halifax ISA account and looking to get the full 4.55% interest = £163.

My question is - Can I meanwhile (from June07) put the full £3000 into another savings account that pays monthly interest until end of March08 and move the full amount into the ISA account and get the full £163 interest. This way I can get both the interest from the ISA and the interest from whatever saving account I have choosen (June07-March08).

Hope this makes sense to you guys.

I just don't want to repeat the same mistake (assumption) I made when I opened my regular safer account. I am paying £250 a month and I started working out that at the end of the one year I would have made £210 interest before tax i.e. £3000@7%. This was until the good people of the site pointed out that was not the case and instead it's calculated on a monthly basis - so I am only getting a mere £80+ interest on a whole year of saving £3000

Thanks a lot

bristolleedsfan

worcester1 wrote: »

Can someone help me on an Isa question?

When is the interest on an Isa account paid? Is it at the end of each month (on whatever you've saved until then) or at the end of the financial year (on the full £3000)

I currently have a Halifax regular saver (7%) which ends in June07 with £3000 + £80 interest. I wish to save the full £3000 into a Halifax ISA account and looking to get the full 4.55% interest = £163.

My question is - Can I meanwhile (from June07) put the full £3000 into another savings account that pays monthly interest until end of March08 and move the full amount into the ISA account and get the full £163 interest. This way I can get both the interest from the ISA and the interest from whatever saving account I have choosen (June07-March08).

"full" 4.55 isa rate on 3000+ must be one of the lowest rates in the market place y dont u look at all the higher rate isas that are available

dates interest is paid on savings accounts will vary from 1 providor to another ..will say in all product guides



Hope this makes sense to you guys.

I just don't want to repeat the same mistake (assumption) I made when I opened my regular safer account. I am paying £250 a month and I started working out that at the end of the one year I would have made £210 interest before tax i.e. £3000@7%. This was until the good people of the site pointed out that was not the case and instead it's calculated on a monthly basis - so I am only getting a mere £80+ interest on a whole year of saving £3000

Thanks a lot

"full" 4.55% isa rate on 3000+ must be one of the lowest rates in the market place y dont u look at all the higher rate isas that are available

dates interest is paid on savings accounts will vary from 1 provider to another ..will say in all product guides

if u are a taxpayer u would most likely be better off ( if u pick a higher rate isa) putting the money straight from your matured ( in june) reg saver into a ISA as u will only get the quoted isa rate prorata for the time the money is in the account, eg if isa rate quoted is 4.55% per year the money needs to be in the account for a "full" year to get the " full" 4.55%, if the money is only in the account for 1 month then u only get 1 months interest

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1077487692,12362,#best1

LittleVoice

worcester1 wrote: »

. . . I currently have a Halifax regular saver (7%) which ends in June07 with £3000 + £80 interest. I wish to save the full £3000 into a Halifax ISA account and looking to get the full 4.55% interest = £163.

My question is - Can I meanwhile (from June07) put the full £3000 into another savings account that pays monthly interest until end of March08 and move the full amount into the ISA account and get the full £163 interest. This way I can get both the interest from the ISA and the interest from whatever saving account I have choosen (June07-March08).

. . .

I just don't want to repeat the same mistake (assumption) I made when I opened my regular safer account. I am paying £250 a month and I started working out that at the end of the one year I would have made £210 interest before tax i.e. £3000@7%. This was until the good people of the site pointed out that was not the case and instead it's calculated on a monthly basis - so I am only getting a mere £80+ interest on a whole year of saving £3000

Hi, worcester1, I've responded to your question on the other thread too.

Can I just point out that you haven't got a mere £80+ interest on a whole year of saving £3000 because, as you now realise, the £3000 wasn't in your account for a whole year. You got a "mere £80+ interest" for a whole year of saving at the rate of, was it, £250/month, an average of £1500 for the year.

worcester1

We keep missing each other Littlevoice as I have posted on the other thread LOL:rotfl:

Yeah I now understand how the interest calculations are worked out - must admit I didn't at first

When I stated a Mere £80, it was simply to due to been frustrated and disappointed that if I knew all I was going to get is £80, then I wouldn't have commitment myself to a fixed monthly amount savings. I would have gone with a flexible savings where you can simply pay in anytime or any amount you want and have access to your savings just incase you wish to make an emergency withdrawals. I understand that it would have paid a lower interest - but £80 is hardly worth it.

There was once I need some money desperately and couldn't simply cancell it online or withdraw the small amount I need for the fear of losing out on the interested I was to get at the end of the first year.

Thanks a lot though