student saving from a part time job

Cypher

they may not charge you any fees for using the authorised overdraft, but might be charging you interest. I'd check the interest rate on your account for authorised overdrafts.

Cypher

I've just had a look on the HSBC website

Student Service - Optional interest free overdraft* up to £1000 in your first year typical 0% EAR variable

So it looks like you've left it too late.

reehsetin

!!!!!!
they did send me a letter saying we're reviewing your overdraft - which me being me i ignored
but they havent said anything since! have to ring them and find out

reehsetin

aparently until aug 07 its still £1,000 interest free - woman on the phone got a bit freaked tho when i asked for it in writing (just in case)
so worthwhile idea?

reehsetin

Nationwide only pay interest out in my savings anually, any way to calculate what i should be getting roughly? or what ive got so far

tom188

Roughly for each payment youve made into the account this year, since interest was last paid.
Interest earned =
Nationwide interest rate*Number of months since deposit/12* Amount deposited.

So if you deposited in july £1000 at 5% youll get roughly
0.05*1000*5/12=£20.

Re your previous post - putting your overdraft in a savings account is a good idea provided you still have enough available so that you dont breach your overdraft limit. You should get 0% interest throughout your university life (and the amount available to you at 0% will increase too) and also for the first couple of years after graduation.

reehsetin

never touched my overdraft so far, always been in the plus so unless i loose my job (highly unlikely) if i go say £400 into my overdraft wont have a problem, if i think i might can always nick something from one of the other accs and put it in

kind of get the equation will give it a try thank you

reehsetin

the way i understand it to be from what you said i worked it out as:
5.05% aer so 5.05 divided by 12 = .42% per month
so if i have 1500 in there over 6m
1500 / 100 * .42 * 6m = £37.8 earned.
so your example
1000 / 100 * (5%/12= .41) * 5m = £20.5
maths was never my strong point, try to understand it in my head

tom188

yes thats the estimate i was suggesting.