How does annual interest work?

Labradoodle11_2

I have a savings account which is due to pay out its annual interest on 1/10. How is the interest worked out?

Does it pay out 4% of your balance on 1/10 or is the interest worked out as an average over the last 12 month period.

I am wondering whether to pay all accessible cash into this account before 1/10 to boost my interest. Please help me.

Steve_xx

Interest is normally accrued on a daily basis, then added to the account on the said date, in your case 1 October. Therefore, if you put another £1000 into your account today, then it would earn interest every day, starting tomorrow, until 1st October.

dparky

Yep. The day you opened the account, you would recieve the interest exactly a year later.

Steve_xx

dparky wrote:

Yep. The day you opened the account, you would recieve the interest exactly a year later.

.........unless you closed the account prior to the first anniversary, in which case you would normally receive interest upto the date of closure.

Robert_Sterling

Does it pay out 4% of your balance on 1/10

NO

Robert_Sterling

Does it pay out 4% of your balance on 1/10

NO