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Question about interest

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msrdar
msrdar Posts: 1 Newbie
in Savings & investments
If (hypothetically speaking) you discovered a 20 year old bank account, how would the interest be calculated on any savings in the account? Would the bank use the current interest rate to calculate compound interest, or would it use historic rates from each year?
Sorry if this is a stupid question:confused: - very grateful for any replies.

Comments

  • whu
    whu Posts: 23,461 Forumite
    10,000 Posts Combo Breaker
    Hi - It would base it on the historic rates not just the current one
    Keep the Faith:cool:
  • Farway
    Farway Posts: 14,658 Forumite
    Part of the Furniture 10,000 Posts Homepage Hero Name Dropper
    And remember interest on bank accounts [not savings accounts] is a fairly recent invention, so do not expect too much because there may not have been any interest earned for a many years

    Depends on bank of course
    Eight out of ten owners who expressed a preference said their cats preferred other peoples gardens
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