New Fixed Term Deposit Accounts from Yorkshire Bank

RetiredInThailand

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

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

That's right.

nad1611

Yeahhh I'm learning!!:T

tanner5555

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

Ifts

tanner5555 wrote: »

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

Same as you, I also received a photocopied Deposit Confirmation Certificate.