isa advice /help

    right opened a isa account with barclays at the start of the fiscal year. Put in £5100 at the stated rate of 3.10% ( barclays goldern isa -issue 2 )

    so my calulations were 3.10% interest on 5100 would be £158,
    £158/12=£13.16 per month interest.
    but for my first month its only £9.87 ( 3rd april-3rd may )
    that make the interest rate near 2.2% , so why advertise 3.10%

    or am i missing somthing.

    as you may have guessed im new to isas.


    The interest will increase month on month and by the end of the year you will earn the 3.1% £158


    something to do with compound interest but by the end of the period you should earn the stated amount

    It is 3.1% AER. As a previous poster said the interest compounds so you will get less than £13 a month at the start and more than £13 a month towards the end of the year - total interest over the full year will average out at 3.1%.

    You would probably have been slightly better off taking annual interest.
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