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# Interest on savngs

Banned
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

Supermod

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)

Original Poster Banned

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

Supermod

So you arent chucking in a lump sum. You are adding to it every month?

Original Poster Banned

magicjay1986;5134968

So you arent chucking in a lump sum. You are adding to it every month?

no, just monthly, gawd im cafuddled :oops:

If you convert it to a monthly interest rate it would be 0.487% per month

Original Poster Banned

Jimbovernon;5134981

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:

Supermod

sassie;5134980

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.

sassie;5134995

yes thats what i thought, then each month as the figure goes up keep … 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

Original Poster Banned

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

magicjay1986;5135008

Try to not let it confuse you. Use the calculator I have just given you … 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

Original Poster Banned

Jimbovernon;5135071

But that won't allow for the interest you earn onthe interest due to … 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

Supermod

Jimbovernon;5135071

But that won't allow for the interest you earn onthe interest due to … 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!

Original Poster Banned

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

sassie;5135120

yes it does help, i think why it confused me was the interest they have … 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?

Original Poster Banned

lumoruk;5135135

you taking me out for dinner sassie?

i will have to talk to the baggage, its their money - lol

Banned

sassie;5135138

i will have to talk to the baggage, its their money - lol

:lol:

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

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

Original Poster Banned

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

magicjay1986;5134990

http://www.moneymatterstome.co.uk/Interactive-tools/GeneralInterestCalculator.htm

Calculator results are off FYI...

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

Most interest is calculated daily

Original Poster Banned

martyn_3000;5135497

is there a saving account that offers such a rate? I opened an account … 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:

nationwide.co.uk/sav…htm

sassie;5136423

the smart to save says its intersts is 0.75% … 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.