Newcastle Building Society ISA, IS IT 3% MONTHLY bonus?!?!?

mf78

Herbalus wrote: »

It also says AER at the end, which means 3% is the Annual Equivalent Rate. Which means you get a total of 3% over the entire year. As there are 12 months in a year, you will get 2.98% divided by 12. (the reason it is 2.98% is because of compounding i.e. in February you get interest on the interest paid in January.

You will not get 3% or 2.98% on your whole balance in month 1. You will get that amount divided by 12.

2.98% divided by twelve...which is exactly what I said I got in my above post

houseofballoons

right is there a calculator to work out how interest works out with this then? alternatively, being a bit cheeky here can someone help work out what happens if i say put in £500 to begin with then say £200 per month for 6 months before taking it all out (and then putting in £200 per month for the remaining 5) - how much interest would i make? pretty confused with the bonus system now. get the feeling this wasn't as good a deal as i initially thought

Archi_Bald

houseofballoons wrote: »

right is there a calculator to work out how interest works out with this then? alternatively, being a bit cheeky here can someone help work out what happens if i say put in £500 to begin with then say £200 per month for 6 months before taking it all out (and then putting in £200 per month for the remaining 5) - how much interest would i make? pretty confused with the bonus system now. get the feeling this wasn't as good a deal as i initially thought

There are many savings/interest calculators on MSE, and on the web. You just have to search for them.

Interest rates are generally rock bottom now - which is superb for people with mortgages and other loans, but pants for savers.

Your best bet for "savings" interest are current accounts right now. Plenty of coverage on the main MSE savings site, and on the forum.