Anyone got a Moneyfarm Cash ISA and checked their daily interest?

snozdop

Currently the Moneyfarm Cash ISA has a base interest rate of 3.80% AER "calculated daily and paid out daily", plus a bonus rate of 0.52% AER "calculated daily and paid out after 12 months", making a total of 4.32% AER ("Sum of base and bonus interest").

All good so far.

Moneyfarm however, are not paying me the base interest rate daily. They are paying me exactly the base rate minus the bonus rate daily. i.e. (3.80% - 0.52%) =3.28%.

I know with compounding the daily interest paid isn't exactly (balance × 3.80%) ÷ 365 days – it'll be slightly less, but what I'm getting is considerably lower.

Anyone else seeing this with their Moneyfarm Cash ISA?

Isthisforreal99

Looking at the T&C's the boosted amount is paid as a lump sum 'no later than the month following the anniversary of your first deposit'

MeteredOut

https://forums.moneysavingexpert.com/discussion/comment/81974287#Comment_81974287

OP is saying they're getting 3.8% including the bonus rate, so when the bonus is paid, they'll only have gotten 3.8% not 4.32%

OP, if you share ISA balance and daily interest calculated, others might be able to work it out, but have you contacted Moneyfarm and asked them?

snozdop

https://forums.moneysavingexpert.com/discussion/comment/81974287#Comment_81974287

That's correct, but as I mentioned, I'm not even getting the 3.80% AER base rate daily. I'm getting the base rate minus the bonus (3.80% - 0.52% = 3.28%), not (4.32% - 0.52% bonus = 3.80%)

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81974326#Comment_81974326

Sorry I misread the original post, but as above some figures for context would be good.

snozdop

https://forums.moneysavingexpert.com/discussion/comment/81974300#Comment_81974300

Ok, so on a balance of £36700 I'm getting £3.29 paid daily (well, not paid daily, because even though they clearly state it's paid daily, it's actually not).

£36700 × 3.80% base rate ÷ 365 days = £3.82 per day. Taking into account the compounding, I should be getting around £3.75 daily.

I worked out what they're actually paying me is £36700 × (3.80% base rate - 0.52% bonus) ÷ 365 days = £3.29 per day

I did ask them, but their explanation doesn't add up. They just said "the 3.80% AER is a compounded rate. To ensure you reach 3.80% over a full year, the daily rate is mathematically set slightly lower". Which contradicts what it say's on their website and the customer dashboard. 3.28% isn't "slightly lower" than 3.80%, and the maths doesn't add up anyway - it's a difference of 46p per day. It's misleading and means you can't verify what their marketing say's.

snozdop

Here's a calculator that takes into account the daily compounding - most annual interest calculators just use the AER divided by 365 days, which is incorrect for each individual day's compounded interest.

https://www.jools.me/compound-interest/

GoodDealSearcher

Snozdrop did you ever get to the bottom of the missing interest. My MoneyFarm ISA has just reached its anniversary.. When I opened it in June 2025 there was a 0.7% bonus making, it about 4.8%, it then dropped to 4.61% and dropped again to 4.32%. Even allowing for the 0.7% not having been paid yet, it seems well short. There was a mystery one off bonus payment made in Feb of £3.14 which may be 0.7% of £500 balance I paid in to open the account, but is not 0.7% of the £30k+ I subsequently deposited shortly thereafter.

Mr_Fixit

Hi, I have a MoneyFarm ISA which is also just reaching the 12 month maturity and I'm just looking at the interest rate - it seems a long way off what I was expecting. I opened it 29th June 2025 and transferred another ISA into it as a lump sum, which got deposited on 11th July 2025.

In my notes when I opened it, it was 4.84% including the bonus. I know it was variable rate, but I don't have any emails telling me when the rate changed, so no easy way to check the expected interest.

Does anyone have the list of historical interest rate changes?

Also, the graph it shows on the dashboard looks very straight, which I would not have expected if the rate changed and interest is paid daily…

Thanks.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82063249#Comment_82063249

You don't get notifications of rate changes, and as I understand it, the base rate of interest changes frequently according to what their money market funds are delivering. All they say is the rate on the website is kept current.

The wayback machine shows the rate as 4.02% (without bonus) in May last year, and there was a 0.7% boost during July, which suggests your rate started slightly above the May rate. Then by August, the rate dropped 0.25%, by October it dropped another 0.17%, by November it was another 0.03% lower, and today it is another 0.1% lower. All in all, it fell 0.55% over the last year.

As quite a bit of the drop happened at the start, the rest of the drop probably wasn't significant enough to appear visually on the graph. I think you'd be looking at roughly a 4.5% average overall with all the cuts. Is it a long way below that?

Mr_Fixit

Thanks for the detailed explanation, Masonic.

How did you get the historic rates you quote - I cannot find them anywhere on the MoneyFarm website?

It is very difficult to know what the current value of the Cash ISA is - the site gives a "net contributions" and a "total market value".

Just calculating the interest based on the "total market value" of the Cash ISA from beginning to after 1 year (it was a single lump sum at beginning); this gives 3.78%. However, it looks like their T&C say the boost is paid separately up to 1 month after the 12 month period - a bit sneaky I think. And it is not clear whether the 3.78% I've calculated already includes their boost or not - Any thoughts on this?

I want to move it to a better rate cash ISA, but as I don't think they've paid the boost yet, I feel I'm having to wait in limbo for another month before I can move it - as I said - a bit sneaky as their headline advertising says boost paid after 12 months…