help! feeling a bit thick tonight!

pavlovs_dog

hope someone out there is a maths whizz and can help with my problem.

im trying to work out what rate of interest im being paid on my ISA with HSBC (to work out whether it is worth sticking with them next year).

my online banking account doesnt seem to tell me, their website lists several different options of cash mini isa, and i dont know which one i have, and im trying to work it out mathematically,but im tired and getting nowhere :eek:

please can someone help by telling me what formula i need to use! my interest is paid monthly, so presumably its some kind of division involving how much interest i was paid at the end of last month, and how much i had in the account before then?

many thanks, p_d

grumbler

m - monthly interest (£)
b - current balance (£)
AER - annual equivalent rate (%)

Approximate formula: AER=m/b*12*100

Exact formula (almost): AER=[(1+m/b)^12-1]*100

Exact formula (absolutely): AER=[(1+m/b)^(365/n)-1]*100, where n is number of days in the month.

pavlovs_dog

wowzers - you're good :beer:

pavlovs_dog

well i've just done the maths and the news isnt brill 4.10 rising to 4.35 in april (tiered interest rates dependant on how much you have saved). they highest it could ever rise to is 4.75. will be shopping for a new product me thinks, see if i can find a better deal!

flossy_splodge

I'm just a bit puzzled...... any particular reason you didn't just contact them and ask???? Or are you a fellow mathsphile?! x

pavlovs_dog

flossy_splodge wrote:

I'm just a bit puzzled...... any particular reason you didn't just contact them and ask???? Or are you a fellow mathsphile?! x

because i work on weekends, and to the best of my knowledge, my branch wouldnt have been open anyway.

there is a method to my madness, honest !

flossy_splodge

Or try looking on their web site????
Don't worry, actually it's impressive you can DO the Maths. Everyone I come across these days seems to be bordering on the totally incapable where numbers are concerned! Not you lot out there before I get a deluge! But I tutor young uns' and I feel for them, they just do not seem to be being taught the fundamental basics. So keep doing the maths and make someone happy. x

pavlovs_dog

the webiste was not particularly clear - interest rates listed for numerous ISAs, all with similar names, and i wasnt sure what i had, other than it being a mini cash ISA.

even when logged into my account, it wouldnt tell me

flossy_splodge

Then you have my apologies and my sympathies. Another question of poor customer service - after all clarity of communication is all. Wouldn't get you far in a court of law if your excuse was " sorry m'lud, didn't quite follow what this was about". We need information to be presented clearly and plainly even if that does mean some of the financial institutuions lose a bit once we can see what they are really offering. Cynical?What me? yessir.