Newly opened 1 year Virgin Money 4.25% ISA, when to pay money in?

norm_

It says the date of maturity is 29/3/24.

If I were to pay in the money today am correct in assuming I wouldn't earn any more, because the rate of interest is calculated from 29/3/23 to 29/3/24?

So I may as well wait to deposit funds?

Thanks in advance.

surreysaver

You earn interest from the day you pay the money in.  Its not really a 1 year account unless you happen to put all the money in on the same day exactly a year before it matures 

etienneg

No. You will earn the same amount of interest each day for which the money is in the account. If it is in there for exactly 365 days you will earn precisely 4.45% of the amount deposited. If you put money in before 29/3/23 it will earn more in total as it will be in there for more days. I opened mine and transferred into it on 3/2/23. It's only called a "1 year ISA" because it lasts for roughly a year.

VNX

Quick sort of related question!

I understand you get 30 days to fund this Virgin 4.25% ISA, I can’t add any more money to this years ISA so the new tax year is 6/4 I think would it work to open this ISA say 25/28 days before the new tax year then fund it on the first day of the new tax year so to secure the account in case it gets withdrawn, or could it be that I do this and they reduce the rate before I find it?

thank you hope this makes sense 

etienneg

Once the account is open the interest rate is fixed. So it should work to open it and fund it next tax year, but within the 30 days allowed from opening. But be careful of leaving it too close to the deadline, in case of any problems with transfers. We get used to almost instantaneous transfers, but faster payments (for example) can take until close of business on the next working day, and of course weekends and bank holidays are not working days. And sometimes larger transfers are held up by the banks for checks.

Albermarle

Plus all ISA providers tend to be very busy around the tax year deadline.

Nevergonnaretire

Just so I understand this correctly, I opened this account beginning of Feb and funded with what I could from this years allowance. However I thought I could still contribute from next years allowance after April the 5th? The info on the email from Virgin on account opening says the following:

"You can pay in as much money as you like - up to the maximum ISA allowance. Even when we stop selling this account, you'll have another 30 days to top up. If we have your mobile number, we'll text you the closing date for adding money to your account. If we receive any money after that date, we may have to return it so don't delay"

So I read this as I can add up to my allowance until they stop selling the account and even then up to 30 days after? Assuming its still being sold at the moment as its on the website? Of course I've received no text to say I only have 30 days left yet...

Albermarle

Normally with a fixed rate savings account ( ISA or not), you have a limited time from when you open it, to put your money in. Typically 14 days. 

In this case they seem to be saying that for this fixed rate you have actually have 30 days, and this will be longer if they continue to offer exactly the same account for sale on their website. It is quite a flexible way of doing things.

When interest rates are changing fast, often some fixed rate accounts are only on sale for a short time, but as the market is a bit more static, then offers are not changing much at the moment.

AmityNeon

Nevergonnaretire said:

Just so I understand this correctly, I opened this account beginning of Feb and funded with what I could from this years allowance. However I thought I could still contribute from next years allowance after April the 5th? The info on the email from Virgin on account opening says the following:

"You can pay in as much money as you like - up to the maximum ISA allowance. Even when we stop selling this account, you'll have another 30 days to top up. If we have your mobile number, we'll text you the closing date for adding money to your account. If we receive any money after that date, we may have to return it so don't delay"

So I read this as I can add up to my allowance until they stop selling the account and even then up to 30 days after? Assuming its still being sold at the moment as its on the website? Of course I've received no text to say I only have 30 days left yet...

The account currently available is Issue 5, with a maturity date of 29 March 2024. Issue 4 has a maturity date of 31 January 2024.

Nevergonnaretire

AmityNeon said:

The account currently available is Issue 5, with a maturity date of 29 March 2024. Issue 4 has a maturity date of 31 January 2024.

Ah Ok I see now. So theoretically then I'm in my 30 days. I can't add any more this tax year anyway so I guess that's done. Strange how I haven't received this text though with the closing date, I assume because I'd already funded it?

Either way I guess I'll just open a new one in the new tax year..

pecunianonolet

Does anyone know when Issue 5 was launched?