AER / Final interest confusing me!

Mimi_Arc_en_ciel

me again!

I’ve confused myself (Its easily done!)

Can someone help? I’m trying to work out the % of interest my DD1 should be expecting:

Her money is in a halifax Regular Savers with 6% AER calculated at the end of each month.

Halifax have told me the interest increases each month because the “pot” of money increases monthly. (Ok, I "get" this)

I opened the account with £100. For the next x3 months i put in £100 then for the rest of the year (8months) I put £96.67

How much interest (£) shoud she recieve?! And can someone explain to me how its worked out as i have another child with similar account but different funds!

Thanks!

CLAPTON

Mimi_Arc_en_ciel wrote: »

me again!

I’ve confused myself (Its easily done!)

Can someone help? I’m trying to work out the % of interest my DD1 should be expecting:

Her money is in a halifax Regular Savers with 6% AER calculated at the end of each month.

Halifax have told me the interest increases each month because the “pot” of money increases monthly. (Ok, I "get" this)

I opened the account with £100. For the next x3 months i put in £100 then for the rest of the year (8months) I put £96.67

How much interest (£) shoud she recieve?! And can someone explain to me how its worked out as i have another child with similar account but different funds!

Thanks!

well it's worked out like this




the first payment of 100 will be saved for 12 month
the second for 11 months
the third for 10 months
etc


so interest is


100 x 12 x 0.06 /12 plus
100 x 11 x 0.06 /12 plus
100 x 10 x 0.06 /12 plus
100 x 9 x 0.06 /12 plus
96.67 x8 x 0.06 /12 plus
96.67 x 7 x 0.06 /12 plus
etc etc




if tax is to be paid then multiply by 0.8

Mimi_Arc_en_ciel

Oh excellent thank you so so much

Archi_Bald

Interest rates are actually calculated daily, not monthly. However, the results will be approximately the same as outlined by CLAPTON