monthly interest how do i work out if i am getting the right amount?

anna42hmr

I have the barclays monthly saver and should be on 7.49% can any one tell me if i am getting the right interest

details are

21st november account opened, 0 balence (£0)
24th november standing order of £100 paid in (£100)
1st december interest 0.15 gross, 0.12 after tax (£100.12)
18th december standing order £241.50 (341.62)
2nd january interest 1.40 gross, 1.12 after tax (£342.74)
16th January standing order £250 (592.74)
2nd february interest £3.05 gross, 2.44 after tax (595.18)
18th February standing order £250.00 (£845.18)
2nd March interest 4.03 gross, 3.23 after tax (£848.41)
18th March standing order £250 (£1098.41)


also is there a standard calculation to work out how much you should be getting if i had another monthly saving account?

oldfella

amount * .0749 / 365 * number of days

looks right to me

Milarky

My estimates of monthly interest (gross) are

0.14
1.40
3.05
4.04
i.e. Looks spot on

(I always check my own interest from Barclays every month and have found them to be accurate - generally all interest calculations by banks will be)

kingmonkey

((1+interest rate/100)^(number of days/365)-1)*capital

((1+interest rate/100)^(number months/12)-1)*capital

sh856531

The chances of a bank with millions of customers ever getting this wrong and it not being put right very very quickly are essentially nil.

I wouldn't worry about it

:-)

Gareth2009

I think it works out that each month you should receive 0.00603712 * the amount in your account as interest.

I think I'm right in saying that just dividing the interest rate by 12 ignores any interest you earn on previous months' interest. The difference will be small so long as the interest rate and time frame are both small though.

In case anyone's interested, here's how I calculated that

1. An interest rate of 7.49% means that after one year you will have 1.0749 x the money you had before.

Call the monthly interest rate "M" then

M^12 = 1.0749

12 log M = log 1.0749

log M = (log 1.0749) / 12

M = 10 ^ ( (log 1.0749) / 12)

M = 1.0060371198939431676015689001809

So, If you have £1000 this should increase to £1006.04 in a month's time.

(I think)

anna42hmr

thanks for the replies everyone, i appreciate it