They say we’ll earn interest compounded on a daily basis, so I’m assuming the return will not change.
Edit: sorry re-read the screenshot, I see they are claiming the below doesn’t apply
Interest is calculated daily based on the balance that day, common with most savings accounts.
If the interest from the previous 0-30 days hasn’t yet been paid, you won’t be paid any interest on it.
Worked example, assume a 5% interest rate and a starting balance of £100k for easy numbers sakes.
100000 x 0.05 = £5k interest over a year, divide that by 365 and that’s £13.69 interest you’ll earn on day one.
If that was paid daily, on day 2 you’d have £100013.69, and the interest for that day would be £13.70, and it’d keep escalating day by day.
If you’re only paid monthly then your daily interest calculation will be £13.69 a day until you receive your first monthly interest payment.
To be clear, the difference is pennies even on a large balance, but they all count.
As Graham said, they claim not, however, it still won’t change how I use it regardless
Oh right. That’s pretty weird then. Be interested to know if that’s actually the case.
Don’t know if this helps, but according to the payment schedule, we receive the same interest payment each day.
My maths is strictly O-level (I’m that old) but I’d conclude from it that interest is not compounded.
(Nonetheless, this provider is easily my go-to provider of Cash ISAs right now).