When is interest paid on my ISA?
There is no set date for interest to be paid on cash ISAs, so it is up to the provider to decide when interest will be paid. See what you need to know.
How and when interest is paid can vary between providers and accounts. For example, with some instant cash ISAs, interest could be calculated daily using your statement balance and paid on a set day in the month. With others, interest may be paid annually on the anniversary of opening your account, or on a date selected by the provider for all its ISA savers. Some ISAs may even give you a choice of monthly or annual interest.
Some ISA providers will use the same date for all their ISAs, while others will choose different dates for different products.
How can I see when interest is paid on an ISA?
When interest is paid should be set out in the terms of the ISA. Some providers make it really easy to find out and include the information in the summary details of the ISA on their website. While with others, you might have to hunt for the information in the terms and conditions of the account.
When is interest paid on Junior ISAs?
Like other cash ISAs, interest can be paid annually or monthly. However, unlike other ISAs, interest can only be withdrawn from the account once the child has reached 18.
When does my money start earning interest?
Typically, your money will start to earn interest when it is paid into your account and is added to your balance. Some providers may wait until funds have cleared before paying interest. Check the terms of your account for full details.
When does my money stop earning interest?
Usually when money is taken out of your ISA savings, interest is paid up to and including the day before it leaves, unless the withdrawal results in a penalty.
This could be if you have a notice account and you haven't given notice before withdrawal, or your ISA is limited to one or two withdrawals a year and you exceed the set number.
The terms of the account should spell out the interest payment rules and how they apply.
Will I get paid my bonus at the same time as the interest?
Different kinds of bonuses can be paid on ISAs and it will depend on the ISA whether it is paid alongside the interest.
For example, some cash ISAs will pay an introductory bonus for the first 12 months or more. The bonus can be paid either by increasing the interest rate and paid with any interest or as a sum at the end of the bonus period, which will be the anniversary of your account opening.
With a Lifetime ISA for adults aged 18-39, for every £4 you save - up to a maximum of £4,000 a year – the government will add £1. So you could get a bonus of £1,000 a year. From the 2018/19 tax year onwards the bonus will be paid every month, so that you can earn interest on the bonus too.
To get your bonus on your Help to Buy ISA, when you are close to buying your first home, you need to ask your solicitor or conveyancer to apply for the Government bonus. Once that is received it will be added to the money you are putting towards your home.