Interest on casg withdrawals, explained please?

scrubmuncher

If you have an interest of 2.5% monthly to be added daily on cash withdrawals then that confuses me. Is t daily or monthly.

Please explain. If you withdraw £80, what is the daily interest if the monthly interest is 2.5%, surely there is an easier way to get this across to us mere mortals.

E.g. £80 for 30 days, what is the interest?

SuperHan

£80 for 30 days will be £2 in interest (2.5% of £80).

You can work out a close estimate per day by just dividing 2.5% by 30, however this does ignore any compounding, but will get you close enough when you're talking days and pennies.

Interest will be calculated daily though.

Nebulous2

Also, as a slight aside, you are likely to have a cash withdrawal fee for taking cash. 2.5% with a minimum £2.50 if I remember correctly. So your £80 for 30 days would cost you £4.50 total.

grumbler

scrubmuncher wrote: »

If you have an interest of 2.5% monthly to be added daily on cash withdrawals then that confuses me. Is t daily or monthly.

Added monthly.
Calculated daily.