How to check bank interest calculations

martindow · 19 July 2008 at 8:00AM

Can anyone suggest how I can check the interest payments on a regular savings account?

I have a monthly saver account with Lloyds which paid 8 per cent for the first two years. I have been paying in 250 pounds per month.

The interest on the statement is lower than I expected and I would like to calculate it myself.

SiuLoong · 19 July 2008 at 8:39AM

Try the regular savings calculator in the savings articles area of the site.. otherwise search for the other threads on regular saver interest.

If you still want to calculate it yourself there is an excel formula some clever person has created but I'm not sure where to find it.

YorkshireBoy · 19 July 2008 at 9:31AM

I think you may find using a spreadsheet is the best way to work it out, especially if you funded it the most beneficial way with £500 straight away, then a further £250 SO that month, and commenced your regular £250 payments on the first of the month thereafter.

By way of a comparison for you, mine was opened mid-December 2006 with £500, funded with £250 a few days later, and then funded with £250 per month from 5th January onwards.

I was paid £143 in mid-December 2007 and I have calculated a second year interest figure of £345 due on the second anniversary in mid-December 2008.

martindow · 19 July 2008 at 12:26PM

Thank you everyone. My figures tally with yorkshireboy's and with the MSE calculator adding on interest for the initial 500 pounds. Thanks also for the spreadsheet suggestions. It seems that Lloyds are not trying to diddle me!

I saw the total in the account now the interest looked so little but of course the balance has built up very gradually.

How to check bank interest calculations

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