Interest

voyagerbear

A question, as I think there may be a 'trick ' to this but have no idea of the way to do it.

Funds in more than on online easy access account and they apply the interest on different dates in the month.

When should you withdraw funds to get the best out of the interest?

Any other relevant points that I need to be aware of would be gratefully received. Thanks.:rolleyes:

debbie42

Savings accounts generally accrue interest on the daily balance, regardless of when they are paid, so I'm not sure what you're getting at here?

YorkshireBoy

voyagerbear wrote: »

When should you withdraw funds to get the best out of the interest?

Never! That way your interest will compound, ie you'll earn interest on interest (with your monthly interest paying accounts).

Any other relevant points that I need to be aware of would be gratefully received.

Interest accrues daily (on your daily closing cleared balance) at the rate of:

closing cleared balance x gross p.a.% / 365

Paul_Herring

they apply the interest on different dates in the month

I think this is where the OP is going astray - when the interest is 'applied' has no bearing on when it is 'accrued.'

For example if interest is paid on the 5th of the month, the OP probably wants to put the money in on the 4th, remove it on the 6th, and will expect a whole month's interest on it, when in reality they'll only get 2 (maybe 3) day's worth of interest.

voyagerbear

Thanks for the replies, I must have misnderstood, but I do realise you can't get a whole month's interest in 3 days, new to this as I am.

Cheers:beer:

Paul_Herring

but I do realise you can't get a whole month's interest in 3 days, new to this as I am.

Others have made that mistake.

If that's not it, then what's your 'trick'?

Paul_Herring

sloughflint wrote: »

There is no trick I'm afraid.

You know that, and I know that, but if we can get them to at least give a hint as to what they think they can do, we can point out why it won't work, and possibly how it may possibly cost them money.