Cash ISA

dannygoulding

Hi,


I currently have a Santander Direct ISA saver which pays 1.60% interest. I currently have £5k in the ISA. They paid the interest at the beginning of March 2015, totalling £53.


My issue is that the ISA reverts to an ISA saver on 16th April 2015, with the lesser interest rate of 0.50% for under 10k.


Seeing as they will pay interest at 1.6% on the following day (17th April) on anything I have put in after March, I was thinking of maxing it out with 10k from my partners account before the end of this tax year, thus earning £116 interest on the 10k put in.


Is that correct??


Also, if I was to put the money in for one day then transfer it out the next day, before the end of the tax year, would I still be paid £116 interest? My thinking is that I can max out this years ISA, transfer it all out, then still have 15K allowance for next tax year.
If I waited to next tax year, and wanted to transfer my ISA due to the lesser interest rate, would I have maxed out the new years allowance straight away by transferring 15k??


Sorry if this is a bit confusing. Hopefully someone can help.


Danny

MarkBargain

You would only earn £116 interest if the money were to be invested at 1.6% for a whole year.

westy22

Also, if I was to put the money in for one day then transfer it out the next day, before the end of the tax year, would I still be paid £116 interest?

You would be paid approximately 0.44p interest in that instance (£10,000 x 1.6%) / 365.