silly question

azdaboss

Hi guys, my first question, its a bit silly so be nice please

EDIT: Just saw the regular savings calculator, still doesnt make sense to me

Can someone tell me exactly how much I'd have in my savings account after 12 months if:

- I paid £300/month into the account.
Interest rates:
- AER = 8%
- Gross 8% p.a.
- Net 6.40% p.a.
- Interest is calculated daily and paid on the first anniversary of account opening.
- Interest rates quoted are fixed for the duration of the 12-month term.

Its the first direct regular savings account. I already have a current account with first direct.

Thank you

noh

Take a look at the First Direct website for the answer.
http://www1.firstdirect.com/1/2/savings/regular-saver-account;jsessionid=0000Ej9RBXkOyA6umOQw0aJTG72:11jk437mr?clear=true

"...if you saved £300 per month for 12 months, you'd receive returns of approximately £156 gross (£124 net) in interest after 12 months."

If you pay 20% tax, the regular savings calculator gives you:-

"After saving £300 a month for 1 year and 0 months,
you will have £3,723.62 in savings.
meaning you've earned £123.62 interest"

xrjtg

For an approximate answer, take how much you'll pay into the account over the year, and add half the relevant interest rate to this figure (to compensate for the money only being in the account for half the year, on average). That might help you understand the answers you're getting.