Nationwide regular saver isa

sh00064

Hi

I just want to check I've understood this correctly. So with this Isa I can deposit maximum 1270 per month, however if I need to withdraw from it I will still receive the maximum interest of 2% on the balance. So say for the first month £25.40 balance of 1270?

Therefore on this basis as I'm not penalised for withdrawing, does it make sense to put in the maximum each month and then withdraw it as I need to spend it?

Thanks for any advice you can give

ctdctd

You can withdraw what you like but you can't put it back later beyond the £1270 per month.

So if you deposit £1270 in on the 1st of the month and withdraw £500 on the 10th, you won't be able to deposit again until the 1st of the next month.

Interest is 2% per year so deposit £1270 for a month and you will get about £2.12 interest.

HTH

sh00064

Thank you for that. So is it worth my depositing the maximum each month then withdrawing as I need. Or should I just deposit what I can afford, because the interest is only calculated over the year anyway?

Thanks

ajdj

There's not really much point depositing into a cash isa just to withdraw money again as needed. It sounds like you want to operate the isa like a current account, in which case there's a load of interest paying current accounts that pay more than 2% anyway. Nationwide themselves have a 5% one (FlexDirect).

YorkshireBoy

sh00064 wrote: »

...the interest is only calculated over the year anyway?

Interest is calculated at the end of each day, on that day's closing balance, at the rate of 2.07% gross p.a.

So if you end today at £1,270 you'll earn for today:

£1,270 x 2.07% / 365 = £0.072 or 7p