annual interest

carl310166

I have just opened an A&L online saver account which pays interest yearly,but what does this mean to me?

If i don't pay anything in for 11 months,then deposit say £1000,will i get the interest on the whole amount?

At the moment,there is nothing in the account,so would i need to deposit £1 in there to start the year off,or does it start when i opened the account?

What i am trying to ask is,does it matter when or how much is paid into the account,it's only once a year that they calculate and pay the interest.

So in effect, could i pay my Egg anniversary money into A&L for one month,get one years interest,then transfer it back out and still get 5 months 0% borrowing on it.

Or,am i getting very confused?

jimclark1967

Interest is earned daily, then paid annually.

So if you only had £1000 in there for a month you would only get one month's worth of interest on it when you got to the annual interest payment day.

crana999

Yes, you are confused!

Interest is usually *calculated* daily but paid yearly, for example, so if you only leave £1000 in there for a month, you will get less interest than if you left it in there for the whole year.

You don't need to "start the year off" by paying in a balance, but you may need to have a minimum balance in there to keep the account open. Check the T&Cs.

carl310166

Thanks both.

I'd better get some money in there soon then!

crana999

sorry, looks like jim and I posted at exactly the same time!