working out savings interest rate

wornoutmumoftwo

Hello, maths was never my strong point (bit thick at it really).

I signed up for an Alliance and Leicester esaver last year paying 6% (I think) - (including bonus)
ANyway, I wondered how I could convert the monthly interest rate into yearly.

THe figures I just checkerd are;

Monthly gross - 2.15%
Bonus - 0.83% (until 31st may 09)

I don't pay tax.

I'd love to know the calculation to do this if there is one.

Thanking you in advance.

Baldur

The rate (both gross & AER) is shown on http://www.alliance-leicester.co.uk/savings/interest-rates.aspx

Either put the first 3 digits of your account number in section 1 or select 'Closed issue accounts' in section 2 then click 'Find' and look for the appropriate account number.

Lansdowne

Those rates look like "eSaver accounts (accounts beginning with 855, 856)" from the above link.

As long as you satisfy the bonus conditions (no withdrawals and whatever else) you would get 2.15 + 0.83 which is 2.98 % or almost 3%.

The difference being having interest paid yearly or monthly is tiny.

So for each £1000 in your account you would get about £30 paid yearly or about £2.50 if paid monthly.

Obviously it would have been more before the rates went down.