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

    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?

    8 Comments

    Banned

    Ask the bank

    Supermod

    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.

    depends on the account - which one is it?

    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...

    Supermod

    schizoboy

    It would depend if the interest paid is compounded so that the interest … 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.

    Supermod

    garbage456

    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.

    Supermod

    garbage456

    3rd option … 3rd option down[url=http://www.moneysupermarket.com/savings/search-all/?enquiryId=830477]http://www.moneysupermarket.com/savings/search-all/?enquiryId=830477[/url]



    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

    If you are talking about the Natwest e saver, don't forget after 12 months the interest falls to 1%
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