New Fixed Term Deposit Accounts from Yorkshire Bank

RetiredInThailand · 11 February 2012 at 5:23PM

The higher headline rate requires compounding the interest. The real yearly rate you get is the lower rate that is printed on the certificate.

nad1611 · 11 February 2012 at 10:37PM

RetiredInThailand wrote: »

The higher headline rate requires compounding the interest. The real yearly rate you get is the lower rate that is printed on the certificate.

Excuse my ignorance, I might need that expanding a little. So I know what compounded interest is.

Is it that the 4.7% is applied to the deposit yearly and compounded and the following year the interest is applied on the deposit plus the compounded previous years interest.

Whereas you'd get the same result if you applied 5.16% over the five years but didn't compound it each year. Is that right?

RetiredInThailand · 12 February 2012 at 12:53AM

That's right.

nad1611 · 12 February 2012 at 10:59AM

Yeahhh I'm learning!!:T

tanner5555 · 22 February 2012 at 11:08PM

Ifts wrote: »

After posting my application to Yorkshire Bank on the 19th Nov, I got my Deposit Confirmation Certificate in the post today (6th Dec).
Date of deposit on the certificate is the 23rd Nov, cheque was not cashed till the 29th Nov. Probably the quickest Ive ever had a fixed term deposit set up (within 3 working days).

Is the certificate an original duly signed and dated? I received a photo-copy