ISA Monthly/Yearly Interest

ljacks_2

Hello,

I want to transfer a previous ISA as well as continue saving with the new year's allowance. I am saving for a house deposit and hope to start looking for a house in January next year, so I may have to withdraw all money out of my new ISA before April 2014. I have currently got an ISA with NatWest with 1.75% AER, in which the interest is paid monthly.

My question is what is the best way to continue saving this tax year? In all the best buys the interest is paid in yearly in April next year - if I was to withdraw early does that mean I wouldn't get any interest? Or should I stick with what I've got now, and then could I transfer next April if I still have my savings and get the full yearly interest from another ISA?

Any help would be much appreciated!

Thank you.

chanz4

virgin money have better monthly paid ones

Saverdan

Virgin money are paying 2.15% interest for easy access Isa accounts opened in this tax year. The interest earned can be paid monthly or yearly, if paid monthly they give you the option of having the interest paid into your standard bank account each month.

innovate

ljacks wrote: »

if I was to withdraw early does that mean I wouldn't get any interest?

Interest is calculated daily, based on the amount in your account. In an instant access ISA, you will get every penny of interest owed to you, regardless of when you withdraw your money.

It's only fixed-term accounts that have penalties for early withdrawals.

Lansdowne

innovate wrote: »

It's only fixed-term accounts that have penalties for early withdrawals.

Not quite true, there are some variable rate notice accounts. Nationwide Champion ISA is one.

innovate

Yes point taken - penalties could apply to notice accounts too. Very few of them about.