Help With Isa Information.

[Caran]

I have to renew one of my ISA's. I have the option to have interest paid monthly or annually.
Is there any difference in the amount of interest I would receive?
If I had it monthly added to my account would I get interest on the new amount each month?

[Buenchico]

See here:
https://www.thisismoney.co.uk/money/experts/article-1555841/Is-monthly-interest-better.html

[Caran]

Thank you Chris. Still not sure what to do.

[Peter Pedant]

it depends on what the interest rates are
but Chris article says that they pay usually slighter lower monthly so that it balances up at the end of the year

I would go for monthly as it is available

cash ISA rates are pretty crip - chris' article talks about 5% which I havent seen for at least 10 y

[ubasses]

As it says in the link provided, always compare the AER, the majority of accounts will have a lower rate quoted for the monthly interest as it takes into account the accumulative balance over the year. You will usually find the AER is the same as on the annual interest.
So which you go for is down to personal need, if the interest is being re-invested in the ISA there will be no long term difference. If you want to take the interest as cash do you want a lump sum at the end of each 12 months or would you prefer a monthly income?
Do not take any notice of the interest rated in the link as it is dated 2001, however that does not change the way the account operates.

[Caran]

On reflection it isn't worth thinking about as the rate is so low. 1.5% for three years. The AER is 1.49%.
If I went monthly I would probably be inundated with paperwork each month so I think I'll go annually.
Thank you all for helpful responses.

[10ClarionSt]

With all respect to Chris, I wouldn't ask for financial advice from anyone else on this website. They'll probably have you donating the lot to a political party or a cats charity.

[Tuvok]

Check the rate you are getting - might be better than a new ISA.

Remember once an ISA always an ISA untill you withdraw it.

If you withdraw it and then start another that counts as this years ISA.

What you need to do is an ISA transfer - keeps it as an ISA and doesn't count as this years.

I havent't checked rates lately, but last time I looked Coventry Building Society gave good rates - been with them 2 years now.

[ABSpareEditor]

I have moved this thread into the category "Business & Finance".

[Peter Pedant]

// With all respect to Chris, I wouldn't ask for financial advice from anyone else on this website. //
calm yourself Clar'
there is no evidence that anyone has followed advice.....

banko this am - deposit - you are getting 0.2%
and by transfer you can get 1.5%
and I said - it is still a completely crap rate ....
annd the clerk said I know

[fiction-factory]

The effective rate of interest is the same over the year. So if you get monthly interest and leave it in the account, then at the end of the year you'd have the same as if you'd opted for annual interest. The only time you should go for monthly interest is if you might need some income and can't withdraw money otherwise. if you take the monthly income out you effectively lose abit of your ISA allowance- but that's neither here nor there when you can better rates elsewhere and we have a reasonable tax free savings allowance anyway.

[DocHH]

The bulk of my ISAs are in Stocks and Shares ISAs rather than Cash ISAs. The average yield is 6%. Some are as low as 3%, others as high as 10%. I can choose to receive dividends as income or reinvest the dividend. The latter has prooved to be beneficial in both increasing capital assets and increasing income. I do not understand why anyne limits their ISA investments to just Cash. You need a balanced portfolio of cash and investments.

[Peter Pedant]

I was thinking about the market
but I cant call how Brexit will go
( ie if I invest now and get it wrong I will lose money)

One - no two! members of my family have "taken baths" over the stock exchange