When is interest on an ISA paid?

londonman81

I'm trying to find out at what point during the year an ISA earns interest.

The reason being that I currently have not used my ISA allowance for this year (ending 5th April 2008).

But if I suddenly deposit the full £3k into an ISA today, I assume it will not get the full interest amount as if I had paid it in on 6th April 2007? Or, does the interest get paid based on how much is in the account on 5th April 2008?


Any clarifications welcome!

jem16

londonman81 wrote: »

I'm trying to find out at what point during the year an ISA earns interest.

Depends on the ISA. A lot pay interest on 5th April but others on anniversary of opening, others at set times.

But if I suddenly deposit the full £3k into an ISA today, I assume it will not get the full interest amount as if I had paid it in on 6th April 2007?

I wish.

Interest will be paid based on how long it's in the account for.

bigbobber

I have a question related to this. I took out an ISA with NSI and it was a really good rate but now it's only 5.8. Should I change it before the tax year ends, is this how it works? or will I lose all my interest I've earned if I do this.

Also if I do change it, do I do this in the new tax year straight away.

Sorry for my ignorance, I'm young.

jem16

bigbobber wrote: »

I have a question related to this. I took out an ISA with NSI and it was a really good rate but now it's only 5.8. Should I change it before the tax year ends, is this how it works? or will I lose all my interest I've earned if I do this.

Also if I do change it, do I do this in the new tax year straight away.

Sorry for my ignorance, I'm young.

You can transfer to another provider that accepts transfers whenever you want. If you transfer it, interest will be marked up at that point and the whole lot transferred to your new provider so you won't lose any interest.

Aegis

bigbobber wrote: »

I have a question related to this. I took out an ISA with NSI and it was a really good rate but now it's only 5.8. Should I change it before the tax year ends, is this how it works? or will I lose all my interest I've earned if I do this.

Also if I do change it, do I do this in the new tax year straight away.

Sorry for my ignorance, I'm young.

Whenever you transfer out the full amount, the interest accrued until that day will be paid to you in full along with the amount you initially deposited.

bigbobber

Thanks guys!

tsmiggy

Another related question,i have £10,000 in a isa thats a 90 day notice isa.Would have to give 90 days notice to transfer it to another provider.

Cheers

jem16

tsmiggy wrote: »

Another related question,i have £10,000 in a isa thats a 90 day notice isa.Would have to give 90 days notice to transfer it to another provider.

Cheers

Sorry - what's the question?

tsmiggy

lol

I am thinking of looking for a better interest rate for my isa.It is presently in a 90 day notice account.If i wanted to transfer it for a better interest rate with another provider,would i have to give my present provider 90 days notice of transfer

jem16

tsmiggy wrote: »

lol

I am thinking of looking for a better interest rate for my isa.It is presently in a 90 day notice account.If i wanted to transfer it to for a better interest rate with another provider,would i have to give my present provider 90 days notice of transfer

If you don't want to lose any interest then yes you would give 90 days notice first.