If I take out a fixed rate, fixed term cash ISA can I leave the capital untouched but take the monthly interest each month?
Follow this topic
Q&A » ISAs
Retweet
Comments (
FacebookComments (5)
-
272Swarbs postedThis will depend on the ISA provider's rules. I think most providers don't let you take any money out - capital or interest. Also, most fixed rate ISAs only pay interest on maturity of the ISA, or once a year for long term ones. They calculate interest on a daily basis, but it will only be paid each year, so you are unlikely to get monthly interest.
Posted on 15 February 2010 |
Love 1 love
Report
-
410manzanilla posted
yes. see:
http://www.nationwide.co.uk/savings/cash_isa/fixedrateisabonds/introduction.htm
http://www.bucksbuildingsociety.com/investments/interest-rates1.asp?type=2
manzanilla
Posted on 15 February 2010 | Love 0 loves
Report
-
804MikeGG1 posted
There is nothing in ISA Rules to prevent interest being paid out monthly.
It is up to the provider and many don't allow the feature on ordinary bonds, let alone ISA bonds.
There are some and Manzanilla has given you 2. Of you are over 50 there is a good one with Nationwide.
However, ISAs are best left to increase rather than be used for income, unless you need that income. The interest does not count against your annual ISA allowance.
Mike
Posted on 15 February 2010 | Love 0 loves
Report
-
0
-
410manzanilla posted
If you are worried about that sort of thing, then a floating rate ISA might be better than a fixed rate ISA.
manzanilla
Posted on 16 February 2010 | Love 0 loves
Report
Post an answer
Sign in or register to post an answer.
Something you're dying to ask... or answer?
Register with lovemoney.com to start asking and answering questions on Q&A.
Get started nowSign in for a better Q&A
Registered already? Great! You can just sign in to ask and answer questions.
Sign in