ISA recommendation - Confused!

GordyD

Hi all

Having lurked on this site for what seems like forever, I am finally making my first post!

My question is, I want to open a new ISA and I'm unsure as to which would be best.

As it's for a specific savings target, I would feel more comfortable with a cash ISA rather than shares.

I need one that doesn't require me to have an account with the same bank or to pay into some kind bond, or any other tie in.

I plan to pay in about £200 a month but have no money to transfer into it, so it would need to be opened with a small amount.

And finally just because I'm weird like that, I would prefer the interest to be paid in monthly.

All of Martin's best buy's fail on one or more of these categories and without his help, I'm confused about what to do next?

Does anyone have any suggestions?

Thank you in advance!

(sorry didn't mean to post it twice! rooky error!)

debbie42

GordyD wrote: »

And finally just because I'm weird like that, I would prefer the interest to be paid in monthly.

I'd imagine you'd get a few more possibilities if you took this one out. It's your perogative to ask for it, but at what cost, and (just out of interest) why do you want it?

GordyD

Thanks Debbie.

The reason why I like it paid monthly, is purely out of an old fashioned and probably irrational desire to see my money "working", that is increase each month.

Although you are probably correct though, I would be willing to have it paid annually as this would lead to a better rate.

Is there normally a big difference between the monthly and annual rates anyway?

Lokolo

Usually monthly and annual are paid the same. What banks will do is offer a lower monthly rate than yearly so that it works out the same at each year.

For instance,

Bank A will offer 6.08% each month or 6.25% each year. The monthly will be lower but if you leave your interest in the account to 'work' it will end up being 6.25% at the end of the year.

You have to look at the AER's to find out which is best (annual effective rate, this is what the rate would be leaving the money in the account for the whole year, monthly or yearly, would give)

Milarky

GordyD wrote: »

Thanks Debbie.

The reason why I like it paid monthly, is purely out of an old fashioned and probably irrational desire to see my money "working", that is increase each month.

Although you are probably correct though, I would be willing to have it paid annually as this would lead to a better rate.

Is there normally a big difference between the monthly and annual rates anyway?

Possibly (in the future?) some bright sparks will think to add a simple widget to their websites so that any account you hold with them they will give both a balance, and a daily-updated 'interest to date' entry. If provided by the bank, it would be official and therefore could be relied upon

Lokolo

Milarky wrote: »

Possibly (in the future?) some bright sparks will think to add a simple widget to their websites so that any account you hold with them they will give both a balance, and a daily-updated 'interest to date' entry. If provided by the bank, it would be official and therefore could be relied upon

Wanna start up an interent bank Milarky? (I have always wanted this, Egg will tell you if you email them though)

david78

Milarky wrote: »

Possibly (in the future?) some bright sparks will think to add a simple widget to their websites so that any account you hold with them they will give both a balance, and a daily-updated 'interest to date' entry. If provided by the bank, it would be official and therefore could be relied upon

Not official. But you can always use your own spreadsheet to do this.

I prefer annual interest (as its harder to spend), so I would want the opposite widget on accounts that pay interest monthly.

If you can drop the monthly interest requirement, the Egg ISA seems to tick all the other boxes.