How to calculate monthly gross interest knowing annual gross

savetilibleed

As the title suggests, does anyone know how to calculate what the gross interest rate is when paid out monthly, knowing the annual gross interest rate. I know it's normally given, but for the 1 year Saga Fixed Rate Bond that is now closed, all I know is the gross having been told it correctly today when I rang again.

The damn form still hasn't arrived so I've had to get them to send it out by special delivery on Monday to arrive guaranteed on Tuesday. The form and cheque has to be back by 30th Nov and its a bit close to the wire! :eek:

oldfella

monthly gross is about 0.2% less than AER. There doesnt need to be a direct relation between annual and monthly gross.

YorkshireBoy

savetilibleed wrote: »

As the title suggests, does anyone know how to calculate what the gross interest rate is when paid out monthly, knowing the annual gross interest rate. I know it's normally given, but for the 1 year Saga Fixed Rate Bond that is now closed, all I know is the gross having been told it correctly today when I rang again.

If by "annual gross" you mean 'gross p.a.' then the monthly interest paid will be...

balance x gross p.a. rate / 365 x n

where n = no of days in the month.


If by "annual gross" you mean 'AER' then use this calculator...

http://www.stoozing.com/mon2yr.htm

sloughflint

Do you mean monthly gross per annum from the AER?

if so that's 1200*[(1+a/100)^(1/12)-1]

savetilibleed

YorkshireBoy wrote: »

If by "annual gross" you mean 'gross p.a.' then the monthly interest paid will be...

balance x gross p.a. rate / 365 x n

where n = no of days in the month.


If by "annual gross" you mean 'AER' then use this calculator...

http://www.stoozing.com/mon2yr.htm

Thanks, yeh that's it - the link you gave does it. Checking it out with one I know both it works. Great.:T