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Calculating Interest
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It depends on how the annual interest is specified.
If the annual interest is specified as 8% APR (which is the usual way), then that assumes compounded interest.
In your example, if you invested £1,000 for a full year at 8% APR, then the principal would grow to exactly £1,080
The OP talks about a savings a/c and for such a/cs the rates are advertised usually as AER (not APR, which is generally used for debt payments such as loan, mortgage etc.). As the OP did not clarify the if the rate was gross or AER, I have used 8% compounding at each interval.
If the rate is 8% AER, then you are right, the interest gained will be £80 and can be arrived at using the formula:
Daily interest = (1+r/100)^(1/365) where r = rate (AER)
At 8% AER, daily interest = 1.000211
For £1000, interest gained for 365 days = (£1000 * (daily int)^365)-£1000
= £80 @ 8% AER
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