current accounts?

20vt-rs

I have a query on current bank accounts. I have noticed recently that Halifax offer 50x more interest than others such as Abby, Natwest etc. I am considering moving from one of the low inteest payers to Halifax but not entirely sure it would be worth it. For example if I paid in a figure at the start of a month, then over the next week half that went out, then over the next 3 weeks it all came out to virtually nothing, would I see a great increase in the amount of interest I'd receive? I'm not sure how this os worked out? Would it be worth the hasstle?

grumbler

20vt-rs wrote:

...For example if I paid in a figure at the start of a month,..

Weekly interest corresponding to 5.12%AER is about 0.1%. If, for example, 'a figure' is £1000, average balance during the 1st week is £750; average balance during next 3 weeks is £250. Interest is about:

£750*0.1%+£250*0.1%*3=£0.75+£0.75=£1.50 gross.

Net interest for a basic rate taxpayer is £1.20.
For 'a figure' £2000/£500 multiply/divide by 2, etc ...
For annual amount multiply by 12....

20vt-rs

Cheers Grumbler, not sure it's worth the hasstle of moving from my low interest account to a Halifax 4.5% AER account, I may make around a quid a month at the most... I think anyway!

Mikeyorks

The relative arithmetic's fairly simple? If your existing account is one at 0.1% then you will get 50x your current interest ... assuming the same spend profile as your OP and assuming the interest is calculated daily on your existing account.

Incidentally the Halifax High Interest account is currently 5.12% - not 4.5%