interest on savings

hedie01

Hi Everybody,,,,,

I'm sorry if this is a stupid question but its allways bugged me,,, when a bank says about its interest rate on savings do you get that interest on the money that you have put in once a month or once a year.... i know,, i know its one if them questions you should know,,,, but weve never had any money to put away and save but now we have a little and it just struck me i did'nt know,,,,
Many thank's for any info,,,,,
Paul

Lokolo

If interest is paid yearly, you get interest based on the average amount in the year.

So if you have £3,000 for 6 months, and £5,000 for 6 months, you will get interest on £4,000 (the average amount).

It is a bit more compex than that but that is the jist of it.

jem16

It depends on the account. The majority are probably yearly interest but some accounts offer monthly interest.

Rollinghome

hedie01 wrote: »

Hi Everybody,,,,,

I'm sorry if this is a stupid question but its allways bugged me,,, when a bank says about its interest rate on savings do you get that interest on the money that you have put in once a month or once a year.... i know,, i know its one if them questions you should know,,,, but weve never had any money to put away and save but now we have a little and it just struck me i did'nt know,,,,
Many thank's for any info,,,,,
Paul

You need to check the details of the account hedie. Many give you the option of monthly or anuual interest. If you choose annual interest it might be paid exactly 12 months after you open the account or paid on a specific day before then such as 31 March or 31 October.

The amount of interest you are paid is normally calculated on your balance on a daily basis. So if you have an extra £100 in your account for just a week you'll get some interest on it.

hedie01

thank's everybody,,, :D:D