Calculating interest - help.

mattih5

Hi,

Could anyone point me in the right direction as to how to calculate interest on the NS&I Direct ISA? I need to know how to calculate the interest accrued on £3000 between April 07 to Jan 08.

Also, is their a way to calculate the interest on a daily basis because my deposits into the ISA have been staggered.

Thanks

LittleVoice

Take the capital at the date from which interest would accrue (6 April or whatever date is applicable for your money), multiply by 0.058 (the current interest rate), divide by 366 (it's a leap year) and mutliply by the number of days till you add the next payment in. That will be your interest for that period.

Take the new capital amount (ie original sum plus first additional payment) and do the same sum from that date to the next payment.

And so on until you come to the latest payment in. For that calculation use the number of days from then until the date in January you have in mind.

Add all the individual interest amounts together.

That of course assumes no changes in the BoE base rate between now and January - but you'll be able to work things out as they happen.

mattih5

Thanks, I will work on this.