Varying interest from fixed savings account

PauperViking

Hi,

This might be a straight forward answer, but I am trying to calculate the amount of tax I will owe this year on my gross-paying fixed savers account.

Problem is that each month the amount varies, and I'm not sure why:

e.g.

133.56 - may
138.01 - june
133.56 - jul
138.01 - aug
138.01 - sep

Anyone have an idea why this varies?

Thanks

noh

PauperViking wrote: »

Hi,

This might be a straight forward answer, but I am trying to calculate the amount of tax I will owe this year on my gross-paying fixed savers account.

Problem is that each month the amount varies, and I'm not sure why:

e.g.

133.56 - may
138.01 - june
133.56 - jul
138.01 - aug
138.01 - sep

Anyone have an idea why this varies?

Thanks

Different number of days in the interest calculation.

calypso_rhapsody

I would say that it is to do with the number of days interest that accrues each month - eg May and July's interest is less (but that will be from some date in April and June so for 30 days) whereas June, Aug and Sept will be for 31 days (as May, July and Aug are 31 day months)

Can you work out a daily rate based on the capital and rate and 365 days and see if that explains it?

Stompa

noh wrote: »

Different number of days in the interest calculation.

Indeed.

Apr & Jun have 30 days (£133.56)
May, Jul & Aug have 31 days (£138.01)

138.01/133.56 = 1.0333
31/30 = 1.0333

PauperViking

Thanks, makes sense :]