Annual v Monthly Interest

Apreciar

I know the annual v monthly discussions have been done to death here and obviously fully understand the compounding effect of the monthly option.
However, unless I am missing something if you are saving for a very short period, say one or two months, you are better opting for annual interest as it would be at a higher rate than monthly; they only converge at the year end.

Am I missing something or is my assumption correct.

oldfella

you are correct - but you would have to close the account in order to force the interest to be paid in order to benefit

Paul_Herring

The difference is small. 61 pence per £1000 saved at 6% withdrawn after 6 months: [strike]http://spreadsheets.google.com/ccc?key=pNBpCyyhhED0L42bCUZCgWA&hl=en[/strike]

Edit: Sorry - wrong URL: http://spreadsheets.google.com/pub?key=pNBpCyyhhED0L42bCUZCgWA&hl=en

harry_w

permissions to access the spreadsheet?

I'm interested in the formulas.

Paul_Herring

harry_w wrote: »

permissions to access the spreadsheet?

I'm interested in the formulas.

If you aren't the person who just sent a request, send one from the first URL.