Newbie questions on IS&I ISA(s)

turborichard

Hi

I'm 20 years old, currently on a 'Gap year' from university.

From my student loan (£2950) i've put roughtly £2000 in an NS&I Cash ISA. Initially I had put £1000 in, and in April when I got my statement I had recieved a measly £32! (interest calculated over period of a year so doesn't matter if I added the other £1000 just before April?). Anyway, now, I understand I get a statement every October and April... i'm confused does this mean in October I will recieve the total amount of interest again, or is that every april?

Also, do you think NS&I is actually any good? I mean £32 for £1000 is a pretty rubbish return. I think the rate is about 4.85%. Are there better ones to choose?

Thanks

Baldur

turborichard wrote: »

Also, do you think NS&I is actually any good? I mean £32 for £1000 is a pretty rubbish return. I think the rate is about 4.85%. Are there better ones to choose?

Have a look through this post for available variable & fixed rate ISAs (scroll down to see those ISAs which accept inward transfers).

Lokolo

Interest is calculated daily and given to you on a yearly basis.

You can get around 6% currently in good ISAs.

Daily Interest = (Amount / 100 * Rate) / 365

Add up all the daily interests in the year and this is the amount you will get at the end of the year (tax year).

You can find the best ISAs here:
http://www.moneysavingexpert.com/savings/best-cash-isa#best

jem16

turborichard wrote: »

Hi

I'm 20 years old, currently on a 'Gap year' from university.

From my student loan (£2950) i've put roughtly £2000 in an NS&I Cash ISA. Initially I had put £1000 in, and in April when I got my statement I had recieved a measly £32! (interest calculated over period of a year so doesn't matter if I added the other £1000 just before April?).

Interest is calculated daily but applied yearly. So if you only had the money in for 3 days, 3 days interest is what you would get. When exactly did you put in the first £1000 and then the second £1000.

Anyway, now, I understand I get a statement every October and April... i'm confused does this mean in October I will recieve the total amount of interest again, or is that every april?

Interest is paid in April only for NS&I.

turborichard

There seems to be a 'direct Isa' from ns&I which has a higher rate..

Also RBS (my bank) offer 5.25% on an instant access cash isa. I think i'd be able to change because I haven't invested after April (this tax year).

jem16

turborichard wrote: »

There seems to be a 'direct Isa' from ns&I which has a higher rate..

It's 5.3% as opposed to their cash ISA which is 4.6%.

Also RBS (my bank) offer 5.25% on an instant access cash isa. I think i'd be able to change because I haven't invested after April (this tax year).

It's pretty easy to get over 6% for new money so 5.25% is not a great rate.

Have a read at this thread for the best ISAs

http://forums.moneysavingexpert.com/showthread.html?t=401374