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INTEREST PAID MONTHLY OR YEARLY

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Comments

  • Ocelot
    Ocelot Posts: 722 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    In general, if you want to spend the interest, have it monthly, otherwise annually.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    500 Posts Third Anniversary Name Dropper
    I personally prefer monthly interest payment, motivates me when the money keeps coming in :smile:
  • poseidon1
    poseidon1 Posts: 2,739 Forumite
    1,000 Posts Second Anniversary Name Dropper
    Always monthly, since it is an essential component of my retirement income.

    Incidentally, my state pension starts soon, and wanted this at maximum frequency. Therefore requested every 2 weeks rather than the default every 4 weeks. You have to know this option exists and ask for it. Nothing on DWP website indicates this is available.
  • AlanP_2
    AlanP_2 Posts: 3,559 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Tax implications need to be considered as well.

    Annual interest will all be counted in tax year it is received whilst monthly will be smoothed.

    Doesn't apply if the investment year aligns with the tax year.
  • Qyburn
    Qyburn Posts: 4,164 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    Annual is sometimes helpful if you want it to fall into a specific tax year. Our savings which were tucked away last year, when we were working, will pay annual interest this year when we have spare savings 0% band. Next year we'll start moving them to monthly.
  • NameWithheld
    NameWithheld Posts: 148 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    AlanP_2 said:
    Tax implications need to be considered as well.

    Annual interest will all be counted in tax year it is received whilst monthly will be smoothed.

    Doesn't apply if the investment year aligns with the tax year.
    The OP is asking about a cash ISA, so there are no tax implications 
  • AlanP_2
    AlanP_2 Posts: 3,559 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    NameWithheld said:
    AlanP_2 said:
    Tax implications need to be considered as well.

    Annual interest will all be counted in tax year it is received whilst monthly will be smoothed.

    Doesn't apply if the investment year aligns with the tax year.
    The OP is asking about a cash ISA, so there are no tax implications 
    Apologies, missed the ISA bit.
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