Savings Advice

Bully1977

I have 20k in a long standing ISA saver bonus account paying 4.02% interest now. The interest I’m getting is about £50-£55 a month but I thought it would be higher than this as I was expecting about £800 a year interest at 4.02%. Do you get a larger sum of interest after 12 months or after the tax year. Am I better off splitting some into a fixed term bond for a year or 2. I just want to maximise the interest. Thanks

Bigwheels1111

Should be £804. £67 a month.
What is the exit penalty, 60, 90, 120, 180 days interest etc.
Do you pay tax, earn more or less than £17,570
Have any other savings earning interest.
Interest earned over £1000 a tax year.
More info needed.

Sharni07

I’d query it directly, it could be a mistake. 

Maybe there is a hidden charge?

Bully1977

There is no exit penalty as such, I’m allowed to make up to 3 or 4 withdrawals (can’t remember which exactly) If I go over the alllowed number of withdrawals then the interest goes to practically nothing. I haven’t made a withdrawal for ages. I do have a fixed term bond with the same provider. 5k at 4.8% so expecting interest to be £240 on that one but that doesn’t mature until end of next June. I pay tax and earn more than than £17,570

xylophone

paying 4.02% interest now.

Has it only just started paying this rate? Was it less before?

Bully1977

It was paying practically nothing, they emailed me to renew the account and it changed to 3.10% then on May 11th. They then increased the rate to 4.02% about 6 weeks ago I reckon.  I wonder then if the last interest received in July was part at 3%

amanda1024

It sounds like the monthly interest was lower than you expected because part of the month was in the 3.10% rate. You could check exactly what date the rate changed (should be in the email) and what date range the July interest payment was for. Or just wait and check August's interest.

Yes, it sounds like you'd be better off putting some or all in a fixed rate account - there are some decent 1 and 2 year fixed rate isas if you haven't used this year's allowance yet. 

Bully1977

I’ll see what Interest I get tomorrow or Monday as that should all be at 4.02%
When you say this years allowance which I know is £20k, does that £20k I already have saved count as this year's allowance or is it £20k of new saving per year

Qyburn

Bully1977 said:

I’ll see what Interest I get tomorrow or Monday as that should all be at 4.02%
When you say this years allowance which I know is £20k, does that £20k I already have saved count as this year's allowance or is it £20k of new saving per year

£20k of new savings across any ISAs in each tax year.