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Interest on savngs

sassie Avatar
banned7y, 8m agoPosted 7 years, 8 months ago
frying my brain, if it is 6% do i divide by 12, and then each month use that to work out the interest earnt on each deposit, depositing monthly
sassie Avatar
banned7y, 8m agoPosted 7 years, 8 months ago
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[mod]#1
If interest is 6%pa paid monthly it will be the deposited amount of say £1000 + 6% = £60.

£60 / 365 x 30 days = £4.93 (using 30 days average)
banned#2
its paid per year, but wanted to work out how to come to end result, if depositing monthly it isnt going to be 6% on final figure
[mod]#3
So you arent chucking in a lump sum. You are adding to it every month?
banned#4
magicjay1986
So you arent chucking in a lump sum. You are adding to it every month?


no, just monthly, gawd im cafuddled :oops:
1 Like #5
If you convert it to a monthly interest rate it would be 0.487% per month
banned#7
Jimbovernon
If you convert it to a monthly interest rate it would be 0.487% per month


yes thats what i thought, then each month as the figure goes up keep using 0.487% yeah :oops:
[mod] 1 Like #8
sassie
no, just monthly, gawd im cafuddled :oops:


Try to not let it confuse you. Use the calculator I have just given you and it will show your total investment. Then deduct your initial investment which will leave you with your interest you have earnt in those months. Then divide that figure by how many months you have been saving and this will give you all interest an average monthly rate.
#9
sassie
yes thats what i thought, then each month as the figure goes up keep using 0.487% yeah :oops:


Yeah

So if start with 100 at end of month would have 100.49 etc etc
banned#10
thank you, its just where the money is now says it is only 0-75 and the interest given doesnt add up and thats what has thrown me
#11
magicjay1986
Try to not let it confuse you. Use the calculator I have just given you and it will show your total investment. Then deduct your initial investment which will leave you with your interest you have earnt in those months. Then divide that figure by how many months you have been saving and this will give you all interest an average monthly rate.


But that won't allow for the interest you earn onthe interest due to compounding
banned#12
Jimbovernon
But that won't allow for the interest you earn onthe interest due to compounding


yes it does, cause you can put in monthly deposits


doh sorry, yes i see what you mean, not really bothered about the monthly interest, was just trying to work out end of year interest but how to do it by deposting monthly
[mod]#13
Jimbovernon
But that won't allow for the interest you earn onthe interest due to compounding


I was trying to work out an average monthly interest. Not interest from the interest. I tried to explain it in such a way that it was clear in my head what I was trying to convey!! Obviously didnt work!
banned#14
yes it does help, i think why it confused me was the interest they have just had for the last year was obviouslt higher interest than that account is showing as now paying
banned#15
sassie
yes it does help, i think why it confused me was the interest they have just had for the last year was obviouslt higher interest than that account is showing as now paying


you taking me out for dinner sassie?
banned#16
lumoruk
you taking me out for dinner sassie?


i will have to talk to the baggage, its their money - lol
banned#17
sassie
i will have to talk to the baggage, its their money - lol


:lol:
#18
Based on £50 per month payment and 6%pa interest

Month Start Of Month End of Month
1 £50.00 £50.24
2 £100.24 £100.73
3 £150.73 £151.47
4 £201.47 £202.45
5 £252.45 £253.67
6 £303.67 £305.15
7 £355.15 £356.88
8 £406.88 £408.86
9 £458.86 £461.10
10 £511.10 £513.58
11 £563.58 £566.33
12 £616.33 £619.33
#19
average rate would come up to approx 3.2638% over a year

eg if you invest 100 a month youd end up with 1200 capital + 39.16569 in interest
banned#20
their account are showing as paying 0-75% yet halifax is paying out at 6%, now checked their interest for last year and it certainly aint 0-75, grrrr maybe best to go for a bath - lol
#21
#22
is there a saving account that offers such a rate? I opened an account with alliance and leicester last September when it was 6.55%, it has now dropped to 2.5% with all the recent bank rate reductions, this still seems to be about the average going rate for a savings account now.
banned#23
Most interest is calculated daily
banned#25
martyn_3000
is there a saving account that offers such a rate? I opened an account with alliance and leicester last September when it was 6.55%, it has now dropped to 2.5% with all the recent bank rate reductions, this still seems to be about the average going rate for a savings account now.


the smart to save says its intersts is 0.75% :w00t:

http://www.nationwide.co.uk/savings/under_18s/under-18s.htm
#26
sassie
the smart to save says its intersts is 0.75% :w00t:

http://www.nationwide.co.uk/savings/under_18s/under-18s.htm


I said I'm with alliance and leiceter, not nationwide... Also at my age I don't quite qualify for an under 18's account lol.

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