Will I get full year ISA interest if I pay in now?

Jezzabell

I have come into some money and want to invest it until I decide what to do. If me and my husband pay £20,000 each into an ISA before the start of the next tax year in April will we get the full interest on the £20,000 even if we pay in late in the year? Also I assume as soon as the new tax year starts we can pay in a further £20,000 each, but will need to wait until April 26 to get the interest. 

Thanks

Stubod

..you will get the"full" interest for the amount of time your money has been in whichever account you use. And yes, you can save another £20k each after the start of the new tax year which is 6th April....

Ayr_Rage

You will get the headline rate and interest will be paid according to the Ts and Cs of the product.

Between now and the end of the tax year you'll get 52 days of interest.

My current cash ISA calculates interest daily and it is credited monthly.

You need to do some research and also get your head around whether the ISA is "flexible", all products are different!

https://moneyfactscompare.co.uk/isa/

400ixl

Interest in ISAs and the financial year are not related to each other.

The financial year element is only for limiting the amount of new money you can put into the ISA system in any financial year.

The amount of interest you earn is related to the investment and when you make it, not the the financial year. 

Albermarle

If you think a bank is going to pay you interest for time when you have no money in your account, then you had better think again.

sammy_zammy

Albermarle said:

If you think a bank is going to pay you interest for time when you have no money in your account, then you had better think again.

That would be nice wouldn’t it! Open 25 savings accounts at 4%, rotate £20k around them and you’ll have 100% interest!

I’m guessing OP is asking whether interest will be calculated on the full 20k or on a fraction of the 20k proportional to the amount of time left in the tax year?

saajan_12

ISAs can have many different types of accounts or investments - eg easy access savings account, 6 months fixed, 1 year fixed, stocks&shares, etc. The interest depends on what type it is and how much time you have it in there. 

Eg if you put in 20k now into a 4% easy access and leave it until the end of the tax year, you'll earn ~ £114. 
Eg if you put in 20k now into a 4% easy access and leave it for 1 year, you'll earn ~£800. 

You can put in another 20k in Apr 2025 (so total of 40k plus interest) and invest that in an easy access if you want to access it earlier, or fix it for 1 year and only get access in Apr 2026, or many more options..

PRAISETHESUN

There's no magic loophole to suddenly get a full years interest without saving the money for a full year. You only get paid interest on the time money actually spends in a savings account. Other posts above have done a better job of explaining how it is broken down than I could.

jimjames

sammy_zammy said:

Albermarle said:

If you think a bank is going to pay you interest for time when you have no money in your account, then you had better think again.

I’m guessing OP is asking whether interest will be calculated on the full 20k or on a fraction of the 20k proportional to the amount of time left in the tax year?

If there is £20k in the account then interest will always be calculated on the full £20k not any fraction of it

friolento

If you take out a loan, would you expect to pay interest for times you did not have the money?

Dazed_and_C0nfused

friolento said:

If you take out a loan, would you expect to pay interest for times you did not have the money?

Probably depends how big the baseball bats were 😳