HTB annual vs monthly interest payment

edwardmluk

In short, if I get a HTB in the short term and buy a house in under a year, do I need to go with a provider who pays interest monthly in order to actually receive that interest (e.g. not Halifax who pay on the account anniversary)?

Archi_Bald

Interest gets calculated daily. You will get any interest accrued by the closing date. The normal interest payment date is irrelevant.

Flobberchops

The 25% bonus gets awarded on the closing date, sure, but what about compounding of regular interest? Surely a monthly interest payment is preferable all other things being equal.

HappyMJ

Flobberchops wrote: »

The 25% bonus gets awarded on the closing date, sure, but what about compounding of regular interest? Surely a monthly interest payment is preferable all other things being equal.

It's exactly the same.

Annual interest of 3% is equal to monthly interest of 2.96% divided by 12 and compounded each month. If anything it's a penny difference per year on £2,000. It's not enough to worry about.