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Calculating Interest

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sorry for the silly question
but have to ask

if a normal cash isa is offering 3% for the year

how much interest would I gain if:


a) I deposited the full £5340 at the beginning of the current tax year


and

b) in monthly increments of £445, totaling £5340 at the end of the year.

Thanks if you can answer.

Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    About £240. £160 on the lump sum and £80 on the monthly payments.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • DragonQ
    DragonQ Posts: 2,198 Forumite
    Part of the Furniture 1,000 Posts
    You can do (a) using a calculator and you can do (b) quite simply using Excel.

    (a) = £160.20
    (b) = ~£88 (exact number depends on which days of the month you deposit the monthly payments)
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    a) £5,340 x 0.03 = £160.20

    b) £445 x 12 x 0.03 / 12 x 6.5 = £86.77


    'b' assumes you make the first instalment on 6th April and the last one on 6th March
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