Does it matter how long your money has been in a savings account?

PAD_2

Hi all,

Just wondering if anyone knew if it made a difference when you put money into a savings account. i.e. 9 months into a years savings account as apposed to having the money in from the time you opened the account.

Cheers!

opinions4u

Your question is unclear.

For what purpose do you ask?

PAD_2

yeah i think i confused myself too!

if i put 10k into a savings account and left it for a year, would i collect more interest than if i put in 1k when opening the account and then 9k after 11 months.

In the interest of 1 year savings accounts and ISAs.

Oblivion

PAD wrote: »

yeah i think i confused myself too!

if i put 10k into a savings account and left it for a year, would i collect more interest than if i put in 1k when opening the account and then 9k after 11 months.

In the interest of 1 year savings accounts and ISAs.

Interest is calculated on a daily basis, and the financial institution is only going to pay you interest on the money they have had access to. So, if you put £10k in for a full year, you get interest on £10k for 365 days.

If you put £1k in at the beginning and a further £9k in after 11 months, you will get interest on £1k for 12 months, plus interest on £9k for 1 month ... all calculated according to how many days are in each month.

Dave.

opinions4u

As oblivion says above. Interest calculated daily.

If you have a specific one year savings account there may be penalties for withdrawing/closing early which would lower the return.