Question about Cash ISA

ColdAsIce

ColdAsIce

ColdAsIce

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Joined
26 May 2006
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Location
Edinburgh
I am on moneysavingexpert, using the cash ISA calculator.

How come if you put in the maximum amount for a financial year £3600 you earn less interest than say putting a £1000 up front and then paying £260 monthly?
 
1 lump sum means interest is paid on that for one month only then small % of that extra, by putting in small amounts the interest increases, as once it's been calculated for 1 month, put in more then the next month then old rate + any new money put into the account is calculated
 
Seems like you don't know how bank interest works.

You get calculated interest daily, although it is only added to your account at set times. It is not done at the end of each year.
 
I have always (well for a few years now)put the max at the beginning of each financial year.I admit i know nowt about interest rate etc.How much more could i get by putting the amount in instalments?approximately? :)
 
You shouldn't do, you'll get max from the year putting it all there at once... lest I'm off as well!
 
ColdAsIce said:
I am on moneysavingexpert, using the cash ISA calculator.

How come if you put in the maximum amount for a financial year £3600 you earn less interest than say putting a £1000 up front and then paying £260 monthly?
Click to expand...

Probably because £1,000 + £260 * 12 is £4,120.
If you put more in you'll earn more interest :p
 
Rossmac said:
Possibly he is only going to be doing it for the last 10 months of the tax year?
Click to expand...

Maybe, but the calculator on the site he mentions assumes that he has £1000 at the start of the tax year and pays in £260 for 12 months with the figures he used, which is £4,120 in total.
 
That's correct, £3600 per year in cash, and the equivalent in shares, or the entire allowance in shares - that's it.

Perhaps the calculator just calculates your return whatever amounts you type into it?
 
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