Halifax Regular Saver at 10%

jem16

Can someone either tell me or tell me how to work this out please.

If I pay in £500pm for the full 12 months, how much interest will I actually make at the end of the term?

YorkshireBoy

(£500 x 12) x 10% / 12 x 6.5 = £325 gross (£260 net of 20% savings interest tax).

mhe

you dont get 10% on savings for the whole years worth

month1 £500 - 10% for 12 monthe
month 2 £500 - 10 % for 11 months
month 12 £500 - 10% for 1 month

jem16

mhe wrote: »

you dont get 10% on savings for the whole years worth

No I know that - which is why I was asking what interest I would actually get.

jem16

YorkshireBoy wrote: »

(£500 x 12) x 10% / 12 x 6.5 = £325 gross (£260 net of 20% savings interest tax).

Can I ask where the 6.5 comes from - the rest I follow?

YorkshireBoy

jem16 wrote: »

Can I ask where the 6.5 comes from - the rest I follow?

First payment is in there 12/12ths of the year
Second payment is in there 11/12ths of the year
...and so on.

12/12 + 11/12 + ... + 2/12 + 1/12 = 78/12

And 78/12 = 6.5

debbie42

You could always look here.

It comes up with a slightly different answer, but the actual final figure would (I'd have thought) depend upon your exact individual payment dates, together with the t&c of the account (daily compounding etc.).

All these clever bods who were optimizing the exact start and subsequent payment dates to wring the most possible interest from the 10% RS will no doubt get a few more quid out of it...

jem16

debbie42 wrote: »

You could always look here.

Thanks. I had looked at the savings calculator before but didn't realise there was one specifically for regular savings.

Still at least I know how it was worked out now thanks to YorkshireBoy.