ISA Interest

crazy_chick_573

I have an ISA with Halifax and have recieved my interest but only got £10.51. I have a balance of £1365.29 and the interest rate is 5.25% so shouldn't I have more? I opened the account on the 12th Feb.

bristolleedsfan

crazy_chick_573 wrote: »

I have an ISA with Halifax and have recieved my interest but only got £10.51. I have a balance of £1365.29 and the interest rate is 5.25% so shouldn't I have more? I opened the account on the 12th Feb.

Interest is only paid for each day the money is in the account, 12th feb- Date interest was paid.

5.25% is per year, u didnt have the money in the account for a year.

ffacoffipawb

crazy_chick_573 wrote: »

I have an ISA with Halifax and have recieved my interest but only got £10.51. I have a balance of £1365.29 and the interest rate is 5.25% so shouldn't I have more? I opened the account on the 12th Feb.

1365.29 * 0.0525 = 71.67 interest per year.

Say £6 a month, and you have had the account for just under 2 months, so £10.51 sounds about right.

Assuming interest added on 7 April (as reported by some people here) that is 17 + 31 + 7 days = 55 days.

1.0525 ^ (55 / 365) - 1 = 0.00774009058362468

Round this to 0.0077, due to old fashioned computers at HBOS (or really due to the fact it gives me the right answer ) then

1365.29 * 0.0077 = £10.51.

So your figure is about right!