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Monthly or end of term interest on ISA?
vigman
Posts: 1,403 Forumite
Hi
As my M&S ISAs are only offering 1.65% for a two year fix, I am just looking at the 2 year fixed Barclays ISA which offers 2.02% with the option of monthly interest payments or an end of term payment. I am already a Barclays customer and so this is easy to set up and transfer via online banking.
Surely you get the same interest amount with either option?
Please could someone point out the pros and cons of each option?
TIA
Vigman
As my M&S ISAs are only offering 1.65% for a two year fix, I am just looking at the 2 year fixed Barclays ISA which offers 2.02% with the option of monthly interest payments or an end of term payment. I am already a Barclays customer and so this is easy to set up and transfer via online banking.
Surely you get the same interest amount with either option?
Please could someone point out the pros and cons of each option?
TIA
Vigman
Any information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.
0
Comments
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Yes, the interest is the same - if you choose monthly then it's paid at 2.00% but if end of term it's 2.02%, the idea being that both equate to 2.02% AER, which takes into account the effect of compounding.I am just looking at the 2 year fixed Barclays ISA which offers 2.02% with the option of monthly interest payments or an end of term payment. I am already a Barclays customer and so this is easy to set up and transfer via online banking.
Surely you get the same interest amount with either option?0 -
OK...just found this:
Monthly: 1 month after the date the flexible cash ISA was opened, and then monthly. Credit interest will be paid to you each month and will not be added to your cash ISA balance
End of term: On the specified maturity date. End of term interest is compounded annually and added to the funds in your cash ISA when it matures.
VigmanAny information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.0 -
Deja vu, I have just found this old thread of problems I had transferring ISAs from M&S to Barclays in the past!
https://forums.moneysavingexpert.com/discussion/4625181
Have these issues been resolved?
TIA
vigmanAny information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.0
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