How much Interest?

lucy_w86

I have an ISA with Egg and I know the interest gets paid in anually on the anniversary of you opening the ISA. The interest rate for Egg is 6.05% (correct me if I am wrong).

How is the interest calculated? Is it whatever is in the ISA on the anniversary, 6.05% of that amount will be given in interest? Or is it calculated upon how much was input into the ISA thorughout the year (even though some may have been withdrawn for various reasons)?

I only have £416 in there as I decided I wanted to pay a large chunk of my credit card off and I took Martins advice (pay your debt before saving). Merely trying to do both was not working. So how much interest should I expect?

bristolleedsfan

lucy_w86 wrote: »

I have an ISA with Egg and I know the interest gets paid in anually on the anniversary of you opening the ISA. The interest rate for Egg is 6.05% (correct me if I am wrong).

How is the interest calculated? Is it whatever is in the ISA on the anniversary, 6.05% of that amount will be given in interest? Or is it calculated upon how much was input into the ISA thorughout the year (even though some may have been withdrawn for various reasons)?

I only have £416 in there as I decided I wanted to pay a large chunk of my credit card off and I took Martins advice (pay your debt before saving). Merely trying to do both was not working. So how much interest should I expect?

Interest is usually calculated daily and paid "annually".

o_c99

Use this link and click on the calculator at the bottom of the page: http://www.moneysavingexpert.com/savings/best-cash-isa

In your case, it will assume that you have put in £416 from day ONE and do not add to it again. If you add to it, obviously the daily interest will be higher and vice versa if you remove money the interest will be less.

Try it out.

LittleVoice

We can't help with calculating your interest because to do so one would need to know when you opened the account, how much you put in and when (if not all at the same time) and when and how much you took out.

It is not paid simply on the amount at the end of the year nor on how much you may have paid in in total during the year.