We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Regular Savings Account - help please

Options
Hi - can anyone help me please? I had a regular savings account which matured in December. It paid 8% interest. For the first 7 months I paid in £300 a month then for the last 5 months I paid in £100 a month. Please can anyone work out how much they reckon the interest should be paid on this. I have not put here the amount I have been paid so that I don't influence the replys. Thanks
«1

Comments

  • Yorkie1
    Yorkie1 Posts: 12,004 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    300*0.08 +
    300 * 0.08 * (11/12) +
    300 * 0.08 * (10/12) +
    300 * 0.08 * (9/12) +
    300 * 0.08 * (8/12) +
    300 * 0.08 * (7/12) +
    300 * 0.08 * (6/12) +
    100 * 0.08 * (5/12) +
    100 * 0.08 * (4/12) +
    100 * 0.08 * (3/12) +
    100 * 0.08 * (2/12) +
    100 * 0.08 * (1/12) = ?
  • henm2
    henm2 Posts: 723 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    A rough and ready way of doing this is as follows

    7 months @ £300 = £2100
    5 months @ £100 = £ 500

    Total = £2600

    Divide this by 2 to give an average balance during the 12 months = £1300

    £1300 @ 8% gross = £104-00 gross £83-20 net
  • xxdeebeexx
    xxdeebeexx Posts: 1,964 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 21 December 2013 at 10:27PM
    treasures wrote: »
    Hi - can anyone help me please? I had a regular savings account which matured in December. It paid 8% interest. For the first 7 months I paid in £300 a month then for the last 5 months I paid in £100 a month. Please can anyone work out how much they reckon the interest should be paid on this. I have not put here the amount I have been paid so that I don't influence the replys. Thanks


    http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#savingscalc


    work out interest on £300 for 12 months. divide by 12 then x by 7
    work out interest on £100 for 12 months. divide by 12 then x by 5


    add the 2 answers together.



    £72.11 + £17.17 = £89.28 (basic rate tax)

    hth


    dx
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 21 December 2013 at 11:09PM
    treasures wrote: »
    Please can anyone work out how much they reckon the interest should be paid on this.
    Certainly. £108.78* after BR tax.

    Post #2 gives you the (almost**) correct method to calculate it.

    What did they pay?




    * You may find it's a few pennies out (not £20-25 out as the other replies are), due to weekends and perhaps Bank Holidays getting in the way and interfering with the SO dates.


    ** It doesn't allow for months having a different number of days in them, but it's as close as you'll get without doing 365 separate calculations!
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    henm2 wrote: »
    A rough and ready way of doing this is as follows

    7 months @ £300 = £2100
    5 months @ £100 = £ 500

    Total = £2600

    Divide this by 2 to give an average balance during the 12 months = £1300

    £1300 @ 8% gross = £104-00 gross £83-20 net
    But the balance at 6 months is more than what you're saying the average balance is.

    So your rough and ready method must be flawed.
  • Thanks all for your replies. They paid me 135.93 gross.
  • Gromitt
    Gromitt Posts: 5,063 Forumite
    treasures wrote: »
    Thanks all for your replies. They paid me 135.93 gross.

    So the prize goes to YorkshireBoy for being the closest at just 4p from the actual :)
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    treasures wrote: »
    Thanks all for your replies. They paid me 135.93 gross.
    Which would have been £108.74 net of basic rate tax. 4p out is close enough! :)
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Gromitt wrote: »
    So the prize goes to YorkshireBoy for being the closest at just 4p from the actual :)
    The "prize" goes to Yorkie1 for doing all the hard work!
  • M0ney
    M0ney Posts: 494 Forumite
    Ninth Anniversary 100 Posts
    I have exactly the same account my last payment will be taken on December 28th and matures on January 28th. I've paid in £300 every month, anyone mind working out how much I should expect?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.7K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.