if i get a bank account that pays interest monthly rather than yearly do they just divide by 12? - HotUKDeals
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if i get a bank account that pays interest monthly rather than yearly do they just divide by 12?

garbage456 Avatar
6y, 3m agoPosted 6 years, 3 months ago
For example if I save 10000 pounds at 2.89% I would get 289 at the end of the year, so if I get interest monthly would I get 289/12, 24 quid every month?
garbage456 Avatar
6y, 3m agoPosted 6 years, 3 months ago
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banned#1
Ask the bank
[mod]#2
How is interest calculated? I think you would get about £293 extra as you are earning interest on the sums in the account. Therefore if they pay you interest monthly that interest is added to the account and you earn from that also.
#3
depends on the account - which one is it?
#4
It would depend if the interest paid is compounded so that the interest is reinvested every month or is part of the overall 2.89%, i think...
[mod]#5
schizoboy
It would depend if the interest paid is compounded so that the interest is reinvested every month or is part of the overall 2.89%, i think...


Correct.
[mod]#6
garbage456
magicjay1986
How is interest calculated? I think you would get about £293 extra as you are earning interest on the sums in the account. Therefore if they pay you interest monthly that interest is added to the account and you earn from that also.


I see, so the interest will show after 1 month will it?


It will if it is calculated and added monthly. You will need to see the details of the saver. If you send me a link of the saver you are looking at I am happy to have a look.
[mod]#7
garbage456
magicjay1986
garbage456
magicjay1986
How is interest calculated? I think you would get about £293 extra as you are earning interest on the sums in the account. Therefore if they pay you interest monthly that interest is added to the account and you earn from that also.
I see, so the interest will show after 1 month will it?
It will if it is calculated and added monthly. You will need to see the details of the saver. If you send me a link of the saver you are looking at I am happy to have a look.


3rd option down

http://www.moneysupermarket.com/savings/search-all/?enquiryId=830477


Interest is added monthly.

1 yr - £10,288.75* - £288.75*
2 yrs - £10,392.10 - £392.10
3 yrs - £10,496.49 - £496.49
4 yrs - £10,601.94 - £601.94
5 yrs - £10,708.44 - £708.44
#8
If you are talking about the Natwest e saver, don't forget after 12 months the interest falls to 1%

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