Calculating monthly interest on Cash ISA

paul_liverpoolfc

Hi

Sorry if this has been asked before but I was wondering how you calculate the monthly interest a Cash ISA will give you.

I currently have £9,200 saved in a 2 year fixed rate Cash ISA with an interest rate of only 0.3%. This gives me around £2 interest a month.

My Cash ISA matures at the end of the month and I see that rates of 3% are available now.

If I was to move to another 2 year fixed rate Cash ISA paying 3%, how much more interest would I be getting a month?

Thanks

Paul

TheMilkmansDad

0.3% = £2.30 pm
3% = £23 pm

Expotter

Not exactly £23, but pretty good approximation. Because of compound interest, it'll be slightly higher every month, you can try using this calculator
https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php  

refluxer

paul_liverpoolfc said:

If I was to move to another 2 year fixed rate Cash ISA paying 3%, how much more interest would I be getting a month?

Two year fixed rate cash ISAs aren't at 3% yet, so make sure you're actually looking at ISA accounts to avoid any mistakes and when you do transfer, use the new ISA provider's proper transfer process rather than closing the old ISA yourself.