Skipton BS: Cash ISA Interest Capitalisation

Misha96

Skipton BS: Cash ISA Capitalisation

I have two cash ISAs with Skipton BS. The first was a 30-month F/R bond opened on 8 April 2024. Interest capitalised on 7April 2025. I had assumed that it would capitalise again tomorrow until I looked at my other Skipton ISA.

The second ISA was opened on 7 April 2025 and the interest capitalised on 4 April… Saturday!

I’d planned to open another Skipton ISA tomorrow because this is the last year for I’ll be able to put £20K away in cash but I’m wary now.

Is something amiss for one ISA to capitalise interest and not the other?

MACKEM99

You do not need to put the full 20k in on any year just put smaller amount in if you can?

Misha96

Thanks but I was asking about capitalisation of interest. The full £20K into a F/R cash ISA is this year's decision. I'm not 65 plus so it will be a while before £20K can go into cash ISA again.

masonic

Different ISAs can pay interest on different dates. You should not have an expectation that all ISAs (or even all ISAs offered by a specific provider) will pay interest on the same date. Check the T&Cs of each product if you want to check when interest is payable.

Why exactly are you wary of taking out another Skipton ISA?

Misha96

https://forums.moneysavingexpert.com/discussion/comment/81951786#Comment_81951786

OK. So you don't think there's anything wrong/ amiss with two Skipton BS ISAs capitalising (*or not*) on different days (and one a non-banking day)?

masonic

Having interest paid and compounded on an earlier non-working day is surely a good thing vs waiting until the next working day for it. I really don't understand your need for it to be credited on 7th April. It is an ISA, so there are no tax implications of receiving it in the earlier tax year.

What do the account T&Cs say about when interest should be paid?

Misha96

https://forums.moneysavingexpert.com/discussion/comment/81951794#Comment_81951794

I don't mind getting interest early! I do mind not getting it or getting it late. That's why I'm wondering about the 30 month ISA which capitalised bang on time last year.

masonic

https://forums.moneysavingexpert.com/discussion/comment/81951798#Comment_81951798

What do the T&Cs say about when interest should be paid on this account? You shouldn't have any expectation to receive interest earlier than promised. The fact that a different account paid interest on a different date is irrelevant.

Misha96

I don't expe

https://forums.moneysavingexpert.com/discussion/comment/81951800#Comment_81951800

I don't expect interest to be paid on any other date than the proper time. I'm merely concerned that one F/R ISA from the same BS paid out early whilst the other has not capitalised. It's due tomorrow. I'll give them a ring tomorrow.

masonic

Are you sure the first one paid out early? What do the T&Cs say?

The currently available fix has the following:

However, fixed term accounts are regularly withdrawn and replaced, so the terms in force for your ISAs will be specific to the time period in which your accounts were opened.

Misha96

https://forums.moneysavingexpert.com/discussion/comment/81951842#Comment_81951842

Yes the first one ought to have paid out today (Bank Holiday), Instead it was Saturday (non-banking day.) The second ISA is definately due to capitalise on the 7th. T&C: annual interest is added “the day before the anniversary of account opening and the day before the end of the fixed term”