Moving savings into ISA at last minute. drandyhills


Please forgive my ignorance about this; all new to savings!

I have an ISA which is empty and a savings account with £15K in. I've been wary of using the ISA as any money I may need to take out of it would result in the amount I can put in being reduced. Hence I've accrued a bit of interest on a monthly basis.

If I move the money into my ISA at the last minute before the tax year ends, will I get the annual interest on it? Or does it have to be sitting in my ISA for the whole year?

Seems like a way of earning interest "twice". Please let me know. Thanks!

Interest on cash ISAs is calculated on the daily balance, like every other account, so, no, you won't get a full year's interest for one day in the account. It would mean you're ready to get a full year's interest for a full year in the account for next year though.

But would the ISA be paying more interest than the best current and Regular Saver accounts?

The tax year is utterly irrelevant as far is interest is concerned, what matters is how long your money has been in.

Most cash ISAs pay interest on a yearly basis, some will do it monthly. There will also be different rules as to how long the money needs to be in there for, some will have minimum withdrawal periods, for example there might be an ISA with a one year term, if you take the money out one day before the year is up, no interest at all..

You certainly cant put it in for 5 minutes and get a years interest which is the jist of your question !

I dont understand what you mean by not putting money in an ISA since if you need to take it out the money you can put in will be reduced, since you haven't put any in at all. You cant get less than that !

Do you realise that the £15k or so you can put in is the annual limit and you can do this each year? Its not an overall limit as to how much. Its each years limit. (next year it goes to £20k)

Also, you can usually get more interest in non ISA accounts.

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