Moneybox: Open access cash ISA interest to be paid monthly

frosch411

Hi all
Got an email today saying interest that my Open Access Cash ISA interest will soon be paid monthly rather than annually.

Personally, I am in favour

Below what the email said.

Thanks

Hi, we’re pleased to say that coming soon, the interest on your Open Access Cash ISA will change from annual to monthly payments. Going forward any interest you earn will be paid into your account on the first day of each month.

When is this changing?

The change to monthly interest payments will take effect across the next few weeks and we’ll be in touch via email when your Cash ISA is ready to be updated.

Important things to note

There will be no impact to your total interest rate, including any bonus rates (if eligible). Any interest you have already accrued within your current 12-month period will be added to your Cash ISA account balance and we’ll let you know when this is complete. During the update on your account, which may take up to one day, you will be temporarily unable to withdraw or move money from your Cash ISA.

JohnB47

I got that message too. I missed it until I read your post. Thanks.

slinger2

A first for me, being forced to change from annual to monthly interest. No big deal.

allegro120

slinger2 said:

A first for me, being forced to change from annual to monthly interest. No big deal.

First for me too   I don't mind if it's monthly or annually as long as the rate is good.  My Moneybox ISA currently pays 4.75%, down to 4.5% on 29th May - I'm happy with this for now  

surreysaver

If the interest rate goes down in the future, the fact you've been getting the interest monthly, means the AER will go down, as it will compound at a lower rate.

Kim_13

At least it’s an ISA, so they’re not forcing a change that could leave people with a higher tax bill.

slinger2

email from Moneybox saying this will be happening tomorrow:

"We previously told you that we’re changing your Open Access Cash ISA interest payments from annual to monthly. This will now update on your account tomorrow."

frosch411

slinger2 said:

email from Moneybox saying this will be happening tomorrow:

"We previously told you that we’re changing your Open Access Cash ISA interest payments from annual to monthly. This will now update on your account tomorrow."

Yup, got this too 😎

slinger2

Something seems to be happening today. My interest has been credited to the account ("Total interest paid"). "Interest due" has dropped to zero.

The interest rate dropped by 0.25% yesterday to 3.75% (the underlying rate - ignoring any introductory bonus).

Impossible to work out exactly what's going on, but the interest seems about right. I assume there'll be another interest payment on 1 June; for just a couple of days.

P1Fanatic

slinger2 said:

Something seems to be happening today. My interest has been credited to the account ("Total interest paid"). "Interest due" has dropped to zero.

The interest rate dropped by 0.25% yesterday to 3.75% (the underlying rate - ignoring any introductory bonus).

Impossible to work out exactly what's going on, but the interest seems about right. I assume there'll be another interest payment on 1 June; for just a couple of days.

My daily interest rate dropped on the 29th as expected but today it dropped even further (with no change in my balance). Strangely estimated interest for the month still looks correct so I can only assume its a mistake on the daily amount (displayed under Wealth tab). Will know for sure when its paid and I get the monthly statement.

slinger2

Paid for 2 days interest today. 

Worth that 2 things have happened. Interest rate down 0.25%. Also change to monthly interest should result in a drop in the gross interest rate by about 0.1% to take account of the monthly compounding. The AER will stay the same.