about my ica

muffin1

Hi
I have an ICA £3,600 and this year only got £36 interest,they say its the goverments fault is that so?:(

innovate

Do you mean you have an ISA? Who are "they" who say it is the government's fault that you haven't checked where you can get better interest? Who is your ISA with, what is the interest rate, how much interest do you consider reasonable, how much are you planning on putting into your ISA this year?

There are several better alternatives which people can suggest once you have answered above questions.

dunstonh

I have an ICA £3,600 and this year only got £36 interest,they say its the goverments fault is that so?

Assume you mean ISA.

The Govt doesnt set interest rates. The providers do. They base it on what they can achieve in the markets and elsewhere. Interest rates are low globally. The bank of England sets the UK base rate but it is very much influenced on money supply and control and the global markets as well as the UK economy. Blaming the UK Govt is a just a lazy answer from someone that doesnt know what they are talking about. An angry man down the pub style answer... "it's the Government's fault" (probably followed up by vote UKIP)

jimjames

muffin1 wrote: »

Hi
I have an ICA £3,600 and this year only got £36 interest,they say its the goverments fault is that so?:(

What interest rate is it paying?

Have you looked at alternatives to ISAs? For £3600 an ISA isn't the best option for most people.

JimmyTheWig

I suspect that the £3,600 wasn't in the account for a whole year.
Maybe it was put in in equal installments through the year.
The AER shows 2%. The OP feels they only got 1%. But they did get 2% on the money that was there at any one time.
The provider says it is the governments fault because the government insist that it is the AER that is quoted.

planteria

there are ISAs paying as low as 1%...so maybe.
there are better rates to be had though, as above:)