Daily interest , how do i work it out please

elepants

hey there

sorry if this is in the wrong place, and probs already a thing for it but cant find it.

can someone please give me the math to work out my daily interest please.

thanks in advance

elepants

[Deleted User]

Hi,

you havn't given any figures, but a simple £100 @ 5% a year would be £5/365, so 1.369p a day, oh , less 20% tax.

Lois_E

It depends how your interest is calculated. Most mortgages are calculated daily and compounded monthly. Some savings accounts are compounded monthly, some six-monthly, quite a lot annually and a few at other time intervals. The compounding makes a difference to how the daily rate is related to the annual rate. Savings interest is also usually taxed at source at basic rate (20%) unless you're not a tax payer and have signed a form to say you qualify to get it gross.

If you let me know whether you're talking about interest you are paying on a mortgage/loan or earning on savings, and how often the interest is compounded (ie added to the account), then I'll tell you how to convert an annual rate into a daily rate.

pavlovs_dog

Mine is compounded daily but I only check the balance once a week.

At its most simple, this weeks balance - last weeks balance divided by 7 will tell me how much my mortgage has cost me per day.

Lois_E

pavlovs_dog wrote: »

Mine is compounded daily but I only check the balance once a week.

At its most simple, this weeks balance - last weeks balance divided by 7 will tell me how much my mortgage has cost me per day.

I didn't realise there were mortgages that compounded daily. Who's that with, then? (Only if you don't mind saying on a public forum, of course).

Calfuray

Lois_E wrote: »

I didn't realise there were mortgages that compounded daily. Who's that with, then? (Only if you don't mind saying on a public forum, of course).

Mine does with Nat*onw*de?

Lois_E

Thanks Calfuray. As they say, you learn something new every day.

HappyMJ

Lois_E wrote: »

I didn't realise there were mortgages that compounded daily. Who's that with, then? (Only if you don't mind saying on a public forum, of course).

and mine did with the Royal Bank of Scotland.

Calfuray

Lois_E wrote: »

Thanks Calfuray. As they say, you learn something new every day.

No problem

It wasn't daily when it was on a fixed rate, but it's moved onto SVR and daily interest now

pavlovs_dog

I'm with Accord