ISA: Timings of Deposits in Tax Year

w1ggins

Hello. I hope this post finds you well.


Does it matter when during the tax year you deposit money into a Fixed Cash NISA in order to get 1 years worth of interest?


I recall putting money in a Fixed Cash ISA many years ago a few days before the tax year ended, and I think I got interest paid on that for 1 year as if it were back dated 11 months or something. Is this the industry standard?


Regards.

p00hsticks

w1ggins wrote: »

I recall putting money in a Fixed Cash ISA many years ago a few days before the tax year ended, and I think I got interest paid on that for 1 year as if it were back dated 11 months or something. Is this the industry standard?

Absolutely not (and I'd be very surprised if you memory is correct). Although interest may only be paid once a year, it is almost always calculated on a daily basis, so will depend not only on how much money you have in it but how long it's been there.


No one is going to pay someone who has only put money in for just a week the same as someone who has had the same amount in for a whole year.

Many FRISAs only let you add money for a short period after opening (typically 30 days) and will not allow any additions after that - you need to check the T&Cs of individual products to see what's allowed.

w1ggins

Thank you for the information. Good job I deposited £5940 into my account yesterday then, but I've missed out on 10 days worth of interest. My ISA calculates interest daily according to the T&Cs.


So on 1st July when the ISA becomes a NISA allowing a further £9060 of cash to be deposited, I should transfer it straight away rather than leave it in the Internet Savings Account which gives slightly less interest on a much less amount. I thought if got interest from this account for most of the tax year then transferred the money from it to the ISA last minute, I would get interest from both accounts. I should stop day dreaming.

ceredigion

go on then give us all a giggle and tell us the APR.

innovate

APR: http://en.wikipedia.org/wiki/Annual_percentage_rate

AER: http://en.wikipedia.org/wiki/Annual_equivalent_rate

w1ggins

ceredigion wrote: »

go on then give us all a giggle and tell us the APR.

Not sure on the APR, but the AER of the ISA dropped to 1.48% from last year.


AER of the Internet Savings account is 1.35%

ceredigion

with hindsight , my post was a little flippant and I really shouldn't have typed that. so you have my apologies .
what I was really getting at is that you can almost certainly do better outside of the isa envelope, there again , you may already know that and have the interest paying current accounts already set up.