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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

    26 Comments

    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.
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