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IF ISA credited with less interest than expected

I've just noticed that my IF ISA [1] has been credited with less interest this month than I expected (less than the previous month in fact, quite impressive given the balance is greater). I'm not aware of the interest rate having changed.

I've emailed IF to ask them to investigate, but any other IF accountholders might want to check their recent interest credits in case this is a widespread problem. (I'm presuming this may be a potentially widespread problem as computers tend to fsck up either not at all, or quite spectacularly..)

[1] Yes, I know it's now a fairly unimpressive ISA, but come April I'm moving. Unfortunately, the ISA I'd like to move to doesn't accept transfers-in (otherwise I'd have moved already), but as my balance is less than even one year's maximum deposit, is there actually anything to stop me entirely legally just doing a physical withdrawal and then depositing "raw cash" in a new ISA come 6 April, since I wouldn't be breaching the maximum annual deposit limit (even taking into account further deposits next tax year)?
Reply to
David M
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Remember that February only has 28 days, so 3 days less than normal to accrue interest. It all depends on when they add the interest, and when the payment actually clears into your account (ie becomes "available balance")

Reply to
Ian Cornish

Legally there is no problem doing this. Whether it's a good idea depends solely on how likely it is that you might wish to deposit more during the coming tax year. It must be a dodgy ISA which doesn't allow transfers-in, so you might be better off finding another which does, and offers a similar interest rate deal.

Reply to
Ronald Raygun

Best at the moment is Alliance & Leicester Direct ISA issue 2 at 5.2%, but part of that is only a promotional rate until some time in 2007, but you can move after that. I have a Direct ISA issue 1 at 5.15% and I use an Excel sheet which calculates my interest accurately.

Marcus

Reply to
Marcus Fox

Ian Cornish wrote in uk.finance about: Re: IF ISA credited with less interest than expected

Aah, oops.. That would indeed explain it! That'll teach me just to divide by 12 as a 'reasonable' rule of thumb.

Who'da thunk just 2-3 fewer days would make so much difference..?

Reply to
David M

Ronald Raygun wrote in uk.finance about: Re: IF ISA credited with less interest than expected

Thanks, that's good to know.

Absolutely, but I know for a fact that short of a sudden windfall or becoming a rich and famous media celebrity, there is absolutely no way I'll be paying in more than the annual limit overall during the next tax year!

I was planning on moving to Yorkshire BS' e-ISA which seems to offer a consistently good rate (Sod's Law says they'll change it now..), but which unfortunately doesn't allow transfers-in. For the small amount of extra interest my savings would generate, I'm not interested in chasing short-term bait'n'switch bonuses and/or deprecation/replacement with 'new issues' that some providers offer.

Reply to
David M

David> I was planning on moving to Yorkshire BS' e-ISA which seems David> to offer a consistently good rate (Sod's Law says they'll David> change it now..), but which unfortunately doesn't allow David> transfers-in. For the small amount of extra interest my David> savings would generate, I'm not interested in chasing David> short-term bait'n'switch bonuses and/or David> deprecation/replacement with 'new issues' that some David> providers offer.

The Bank of Scotland/Halifax online ISA (which only allows deposits by telephone now for some reason) gives 5% and allows transfers in and doesn't charge for transferring out in the future. You can get a free cup of coffee in the branch as they fill in the form for you too :)

Since 0.1% of \pounds 3000 over a year is only three quid, so you're probably right not to worry about spending ages deciding on the very best deal from month to month.

Cheers,

Kenny.

Reply to
Kenneth MacDonald

Interesting gotcha.

I wonder if anywhere still runs 13 four week 'months' for accounting purposes. If I stick my fingers in my ears and go "La la la" then the memories of fighting /that/ particular book-keepng system might go away.....

Bonus points; consider trading systems that must account for global 'bank holidays' and the claim that for for certain boundary conditions (IIRC) the Pope can determine when Easter is.

rgds, Alan

Reply to
Alan Frame

"David M" wrote

I'd 'ave thunk that 3 days in 30 would make about 10% difference.

What d'you thunk? ;-)

Reply to
Tim

Isn't £3 for a "free" cup of coffee is a bit of a rip-off?

Reply to
Ronald Raygun

R> Kenneth MacDonald wrote: >> The Bank of Scotland/Halifax online ISA (which only allows >> deposits by telephone now for some reason) gives 5% and allows >> transfers in and doesn't charge for transferring out in the >> future. You can get a free cup of coffee in the branch as they >> fill in the form for you too :) >> >> Since 0.1% of \pounds 3000 over a year is only three quid, so >> you're probably right not to worry about spending ages deciding >> on the very best deal from month to month.

R> Isn't £3 for a "free" cup of coffee is a bit of a rip-off?

Depends if it's raining and cold outside or not :)

Kenny.

Reply to
Kenneth MacDonald

Tim wrote in uk.finance about: Re: IF ISA credited with less interest than expected

Please feel free to help me by correcting my foreign language errors <

Reply to
David M

Kenneth MacDonald wrote in uk.finance about: Re: IF ISA credited with less interest than expected

Sure, but given that HBoS own IF, they'll have another think coming if they think that I'll reward their slashing the IF interest rate (which was previously pretty good) by re-depositing the cash with them under a different label.. ;-(

Perhaps they'd like to explain to us all how one arm (tentacle?) can pay a good rate of interest, while another (with no branch costs whatsoever) can't?

Basically this experience has just convinced me more that it's best to stick to (the few remaining) building societies to avoid being screwed over. It's a shame for all of us that so many people (especially carpetbaggers) just took the (one-off) demutualisation money and ran..

Reply to
David M

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