We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Monthly saving interest CONFUSED! help please!
Comments
-
Yes it will. Thats why the AER is higher than the gross. It means the interest itself earns interest and over the year you earn 4.2% even though you have been getting 4.17% monthly.
And you only get 4.2%/year from 4.17%/month if you are not a tax payer.
For a tax payer it is lower because the monthly 4.17% amounts are added to the account after tax and there is less capital to attract the 4.17% interest than if it had been paid gross.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards