Help... How di I calculate how much interest??

chergar

Hi all I hope someone can help me, I have a Halifax Clarity card and am planning to use it to lift cash when I am on holiday, I am trying to work out how much this will actually cost me over the course of my holiday but I am not sure how to calculate it and was hoping someone can explain it to me.

Say I lift £600 and pay it all back after 14 days at a rate of 18%

How much interest will I be charged in total?

I wont be lifting the whole £600 at once but for ease of calculation let's just say I was and I will probably pay some off when I can access the internet at my hotel but again let's say I couldn't access the internet until I come home. (worst case scenario type thing)

Thank you.

grumbler

The daily rate is about 18%/365=0.05% (the exact figure is 1.18^(1/365)-1=0.045%).

0.05%*14=0.7%
£600*0.7%=...

jackieblack

Or
£600 x 18% x 14/365
=£4.14

bengalknights

It will be less than 5 pound

chergar

Thank you all for your replies.
I tried to work it out and was getting roughly the same but thought it sounded quite cheap and wondered if I had went wrong somewhere.

It works out so much better to lift my euro when away rather than change cash here, even with the interest added.

Thanks again.

bengal-stripe

chergar wrote: »

I wont be lifting the whole £600 at once but for ease of calculation let's just say I was and I will probably pay some off when I can access the internet at my hotel but again let's say I couldn't access the internet until I come home. (worst case scenario type thing)

At 18%, the daily interest is about 10 pence for every £200 drawn.

Herbalus

chergar wrote: »

It works out so much better to lift my euro when away...

Where I come from, lift is a synonym of steal.

jackieblack

chergar wrote: »

Thank you all for your replies.
I tried to work it out and was getting roughly the same but thought it sounded quite cheap and wondered if I had went wrong somewhere.

It works out so much better to lift my euro when away rather than change cash here, even with the interest added.

Thanks again.

Yes, exactly right, that's what makes the Clarity such a good card for use abroad