ISA interest question

saveaholic68

Hi, I'm sure this question has been asked before, but I've had a quick look through this forum and I can't find the answer.
Is interest paid dependant on how long the cash has been in your account? For example, if I was to put a lump sum into my ISA at the beginning of the new tax year (April 08), would I get more interest back than if I had deposited the lump sum next March (Mar 09)? I hope that makes sense, I think what I am trying to say, is to earn the full amount of interest offered, does the money have to be in the account for a full 12 months? Thanks in advance

jamesd

Yes, the amount of interest paid depends on how long the money is in the account. The longer it's there the more you get - twice as long produces twice the interest. If the money was in there for one month you'd get a bit less than 1/12 of the annual amount. A bit less thatn 1/12 because you won't get interest on the interest for as long.

saveaholic68

Great thanks!