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Santander ESaver interest calculations wrong?
shennan
Posts: 27 Forumite
I don't really understand the savings rates on the Santander Regular ESaver.
In its summary on its website, it says:
"Based on a regular payment of £200 per month for 12 months at 5.00% gross (variable), you could earn up to £64.33 in interest."
This doesn't seem right to me. If I put in £200 each month, building up to £400, £600, £800 etc, my calculation is that over the year I should have received about £780 in interest. This is based on the logic that...
Month 1 saving on £200 is £10making total savings £10
Month 2 saving on £400 is £20making total savings £30
Month 3 saving on £600 is £30making total savings £60
Month 4 saving on £800 is £40making total savings £100
Month 5 saving on £1000 is £50making total savings £150
Month 6 saving on £1200 is £60making total savings £210
Month 7 saving on £1400 is £70making total savings £280
Month 8 saving on £1600 is £80making total savings £360
Month 9 saving on £1800 is £90making total savings £450
Month 10 saving on £2000 is £100making total savings £550
Month 11 saving on £2200 is £110making total savings £660
Month 12 saving on £2400 is £120making total savings £780
Is this calculation wrong?
Also, I know that I must have a Santander 123 Account to have the Regular ESaver, but if I 'drip-feed' savings from this account, is the same logic applicable (with the 3% rate) to the money in the 123 Account? At the end of the year, am I allowed to take the money out of the ESaver (as the rate drops to very low).
Thanks.
In its summary on its website, it says:
"Based on a regular payment of £200 per month for 12 months at 5.00% gross (variable), you could earn up to £64.33 in interest."
This doesn't seem right to me. If I put in £200 each month, building up to £400, £600, £800 etc, my calculation is that over the year I should have received about £780 in interest. This is based on the logic that...
Month 1 saving on £200 is £10making total savings £10
Month 2 saving on £400 is £20making total savings £30
Month 3 saving on £600 is £30making total savings £60
Month 4 saving on £800 is £40making total savings £100
Month 5 saving on £1000 is £50making total savings £150
Month 6 saving on £1200 is £60making total savings £210
Month 7 saving on £1400 is £70making total savings £280
Month 8 saving on £1600 is £80making total savings £360
Month 9 saving on £1800 is £90making total savings £450
Month 10 saving on £2000 is £100making total savings £550
Month 11 saving on £2200 is £110making total savings £660
Month 12 saving on £2400 is £120making total savings £780
Is this calculation wrong?
Also, I know that I must have a Santander 123 Account to have the Regular ESaver, but if I 'drip-feed' savings from this account, is the same logic applicable (with the 3% rate) to the money in the 123 Account? At the end of the year, am I allowed to take the money out of the ESaver (as the rate drops to very low).
Thanks.
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Comments
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Ok, I guess that makes sense if I divide the 5% AER by 365 days of the year, running this logic:
savings against £200 on day 1 is £0.027397260273972605
savings against £200 on day 2 is £0.027397260273972605
savings against £200 on day 3 is £0.027397260273972605
savings against £200 on day 4 is £0.027397260273972605
savings against £200 on day 5 is £0.027397260273972605
savings against £200 on day 6 is £0.027397260273972605
savings against £200 on day 7 is £0.027397260273972605
savings against £200 on day 8 is £0.027397260273972605
savings against £200 on day 9 is £0.027397260273972605
savings against £200 on day 10 is £0.027397260273972605
savings against £200 on day 11 is £0.027397260273972605
savings against £200 on day 12 is £0.027397260273972605
savings against £200 on day 13 is £0.027397260273972605
savings against £200 on day 14 is £0.027397260273972605
savings against £200 on day 15 is £0.027397260273972605
savings against £200 on day 16 is £0.027397260273972605
savings against £200 on day 17 is £0.027397260273972605
savings against £200 on day 18 is £0.027397260273972605
savings against £200 on day 19 is £0.027397260273972605
savings against £200 on day 20 is £0.027397260273972605
savings against £200 on day 21 is £0.027397260273972605
savings against £200 on day 22 is £0.027397260273972605
savings against £200 on day 23 is £0.027397260273972605
savings against £200 on day 24 is £0.027397260273972605
savings against £200 on day 25 is £0.027397260273972605
savings against £200 on day 26 is £0.027397260273972605
savings against £200 on day 27 is £0.027397260273972605
savings against £200 on day 28 is £0.027397260273972605
savings against £200 on day 29 is £0.027397260273972605
savings against £200 on day 30 is £0.027397260273972605
savings against £400 on day 31 is £0.05479452054794521
savings against £400 on day 32 is £0.05479452054794521
savings against £400 on day 33 is £0.05479452054794521
savings against £400 on day 34 is £0.05479452054794521
savings against £400 on day 35 is £0.05479452054794521
savings against £400 on day 36 is £0.05479452054794521
savings against £400 on day 37 is £0.05479452054794521
savings against £400 on day 38 is £0.05479452054794521
savings against £400 on day 39 is £0.05479452054794521
savings against £400 on day 40 is £0.05479452054794521
savings against £400 on day 41 is £0.05479452054794521
savings against £400 on day 42 is £0.05479452054794521
savings against £400 on day 43 is £0.05479452054794521
savings against £400 on day 44 is £0.05479452054794521
savings against £400 on day 45 is £0.05479452054794521
savings against £400 on day 46 is £0.05479452054794521
savings against £400 on day 47 is £0.05479452054794521
savings against £400 on day 48 is £0.05479452054794521
savings against £400 on day 49 is £0.05479452054794521
savings against £400 on day 50 is £0.05479452054794521
savings against £400 on day 51 is £0.05479452054794521
savings against £400 on day 52 is £0.05479452054794521
savings against £400 on day 53 is £0.05479452054794521
savings against £400 on day 54 is £0.05479452054794521
savings against £400 on day 55 is £0.05479452054794521
savings against £400 on day 56 is £0.05479452054794521
savings against £400 on day 57 is £0.05479452054794521
savings against £400 on day 58 is £0.05479452054794521
savings against £400 on day 59 is £0.05479452054794521
savings against £400 on day 60 is £0.05479452054794521
savings against £600 on day 61 is £0.08219178082191782
savings against £600 on day 62 is £0.08219178082191782
savings against £600 on day 63 is £0.08219178082191782
savings against £600 on day 64 is £0.08219178082191782
savings against £600 on day 65 is £0.08219178082191782
savings against £600 on day 66 is £0.08219178082191782
savings against £600 on day 67 is £0.08219178082191782
savings against £600 on day 68 is £0.08219178082191782
savings against £600 on day 69 is £0.08219178082191782
savings against £600 on day 70 is £0.08219178082191782
savings against £600 on day 71 is £0.08219178082191782
savings against £600 on day 72 is £0.08219178082191782
savings against £600 on day 73 is £0.08219178082191782
savings against £600 on day 74 is £0.08219178082191782
savings against £600 on day 75 is £0.08219178082191782
savings against £600 on day 76 is £0.08219178082191782
savings against £600 on day 77 is £0.08219178082191782
savings against £600 on day 78 is £0.08219178082191782
savings against £600 on day 79 is £0.08219178082191782
savings against £600 on day 80 is £0.08219178082191782
savings against £600 on day 81 is £0.08219178082191782
savings against £600 on day 82 is £0.08219178082191782
savings against £600 on day 83 is £0.08219178082191782
savings against £600 on day 84 is £0.08219178082191782
savings against £600 on day 85 is £0.08219178082191782
savings against £600 on day 86 is £0.08219178082191782
savings against £600 on day 87 is £0.08219178082191782
savings against £600 on day 88 is £0.08219178082191782
savings against £600 on day 89 is £0.08219178082191782
savings against £600 on day 90 is £0.08219178082191782
savings against £800 on day 91 is £0.10958904109589042
savings against £800 on day 92 is £0.10958904109589042
savings against £800 on day 93 is £0.10958904109589042
savings against £800 on day 94 is £0.10958904109589042
savings against £800 on day 95 is £0.10958904109589042
savings against £800 on day 96 is £0.10958904109589042
savings against £800 on day 97 is £0.10958904109589042
savings against £800 on day 98 is £0.10958904109589042
savings against £800 on day 99 is £0.10958904109589042
savings against £800 on day 100 is £0.10958904109589042
savings against £800 on day 101 is £0.10958904109589042
savings against £800 on day 102 is £0.10958904109589042
savings against £800 on day 103 is £0.10958904109589042
savings against £800 on day 104 is £0.10958904109589042
savings against £800 on day 105 is £0.10958904109589042
savings against £800 on day 106 is £0.10958904109589042
savings against £800 on day 107 is £0.10958904109589042
savings against £800 on day 108 is £0.10958904109589042
savings against £800 on day 109 is £0.10958904109589042
savings against £800 on day 110 is £0.10958904109589042
savings against £800 on day 111 is £0.10958904109589042
savings against £800 on day 112 is £0.10958904109589042
savings against £800 on day 113 is £0.10958904109589042
savings against £800 on day 114 is £0.10958904109589042
savings against £800 on day 115 is £0.10958904109589042
savings against £800 on day 116 is £0.10958904109589042
savings against £800 on day 117 is £0.10958904109589042
savings against £800 on day 118 is £0.10958904109589042
savings against £800 on day 119 is £0.10958904109589042
savings against £800 on day 120 is £0.10958904109589042
savings against £1000 on day 121 is £0.13698630136986303
savings against £1000 on day 122 is £0.13698630136986303
savings against £1000 on day 123 is £0.13698630136986303
savings against £1000 on day 124 is £0.13698630136986303
savings against £1000 on day 125 is £0.13698630136986303
savings against £1000 on day 126 is £0.13698630136986303
savings against £1000 on day 127 is £0.13698630136986303
savings against £1000 on day 128 is £0.13698630136986303
savings against £1000 on day 129 is £0.13698630136986303
savings against £1000 on day 130 is £0.13698630136986303
savings against £1000 on day 131 is £0.13698630136986303
savings against £1000 on day 132 is £0.13698630136986303
savings against £1000 on day 133 is £0.13698630136986303
savings against £1000 on day 134 is £0.13698630136986303
savings against £1000 on day 135 is £0.13698630136986303
savings against £1000 on day 136 is £0.13698630136986303
savings against £1000 on day 137 is £0.13698630136986303
savings against £1000 on day 138 is £0.13698630136986303
savings against £1000 on day 139 is £0.13698630136986303
savings against £1000 on day 140 is £0.13698630136986303
savings against £1000 on day 141 is £0.13698630136986303
savings against £1000 on day 142 is £0.13698630136986303
savings against £1000 on day 143 is £0.13698630136986303
savings against £1000 on day 144 is £0.13698630136986303
savings against £1000 on day 145 is £0.13698630136986303
savings against £1000 on day 146 is £0.13698630136986303
savings against £1000 on day 147 is £0.13698630136986303
savings against £1000 on day 148 is £0.13698630136986303
savings against £1000 on day 149 is £0.13698630136986303
savings against £1000 on day 150 is £0.13698630136986303
savings against £1200 on day 151 is £0.16438356164383564
savings against £1200 on day 152 is £0.16438356164383564
savings against £1200 on day 153 is £0.16438356164383564
savings against £1200 on day 154 is £0.16438356164383564
savings against £1200 on day 155 is £0.16438356164383564
savings against £1200 on day 156 is £0.16438356164383564
savings against £1200 on day 157 is £0.16438356164383564
savings against £1200 on day 158 is £0.16438356164383564
savings against £1200 on day 159 is £0.16438356164383564
savings against £1200 on day 160 is £0.16438356164383564
savings against £1200 on day 161 is £0.16438356164383564
savings against £1200 on day 162 is £0.16438356164383564
savings against £1200 on day 163 is £0.16438356164383564
savings against £1200 on day 164 is £0.16438356164383564
savings against £1200 on day 165 is £0.16438356164383564
savings against £1200 on day 166 is £0.16438356164383564
savings against £1200 on day 167 is £0.16438356164383564
savings against £1200 on day 168 is £0.16438356164383564
savings against £1200 on day 169 is £0.16438356164383564
savings against £1200 on day 170 is £0.16438356164383564
savings against £1200 on day 171 is £0.16438356164383564
savings against £1200 on day 172 is £0.16438356164383564
savings against £1200 on day 173 is £0.16438356164383564
savings against £1200 on day 174 is £0.16438356164383564
savings against £1200 on day 175 is £0.16438356164383564
savings against £1200 on day 176 is £0.16438356164383564
savings against £1200 on day 177 is £0.16438356164383564
savings against £1200 on day 178 is £0.16438356164383564
savings against £1200 on day 179 is £0.16438356164383564
savings against £1200 on day 180 is £0.16438356164383564
savings against £1400 on day 181 is £0.19178082191780824
savings against £1400 on day 182 is £0.19178082191780824
savings against £1400 on day 183 is £0.19178082191780824
savings against £1400 on day 184 is £0.19178082191780824
savings against £1400 on day 185 is £0.19178082191780824
savings against £1400 on day 186 is £0.19178082191780824
savings against £1400 on day 187 is £0.19178082191780824
savings against £1400 on day 188 is £0.19178082191780824
savings against £1400 on day 189 is £0.19178082191780824
savings against £1400 on day 190 is £0.19178082191780824
savings against £1400 on day 191 is £0.19178082191780824
savings against £1400 on day 192 is £0.19178082191780824
savings against £1400 on day 193 is £0.19178082191780824
savings against £1400 on day 194 is £0.19178082191780824
savings against £1400 on day 195 is £0.19178082191780824
savings against £1400 on day 196 is £0.19178082191780824
savings against £1400 on day 197 is £0.19178082191780824
savings against £1400 on day 198 is £0.19178082191780824
savings against £1400 on day 199 is £0.19178082191780824
savings against £1400 on day 200 is £0.19178082191780824
savings against £1400 on day 201 is £0.19178082191780824
savings against £1400 on day 202 is £0.19178082191780824
savings against £1400 on day 203 is £0.19178082191780824
savings against £1400 on day 204 is £0.19178082191780824
savings against £1400 on day 205 is £0.19178082191780824
savings against £1400 on day 206 is £0.19178082191780824
savings against £1400 on day 207 is £0.19178082191780824
savings against £1400 on day 208 is £0.19178082191780824
savings against £1400 on day 209 is £0.19178082191780824
savings against £1400 on day 210 is £0.19178082191780824
savings against £1600 on day 211 is £0.21917808219178084
savings against £1600 on day 212 is £0.21917808219178084
savings against £1600 on day 213 is £0.21917808219178084
savings against £1600 on day 214 is £0.21917808219178084
savings against £1600 on day 215 is £0.21917808219178084
savings against £1600 on day 216 is £0.21917808219178084
savings against £1600 on day 217 is £0.21917808219178084
savings against £1600 on day 218 is £0.21917808219178084
savings against £1600 on day 219 is £0.21917808219178084
savings against £1600 on day 220 is £0.21917808219178084
savings against £1600 on day 221 is £0.21917808219178084
savings against £1600 on day 222 is £0.21917808219178084
savings against £1600 on day 223 is £0.21917808219178084
savings against £1600 on day 224 is £0.21917808219178084
savings against £1600 on day 225 is £0.21917808219178084
savings against £1600 on day 226 is £0.21917808219178084
savings against £1600 on day 227 is £0.21917808219178084
savings against £1600 on day 228 is £0.21917808219178084
savings against £1600 on day 229 is £0.21917808219178084
savings against £1600 on day 230 is £0.21917808219178084
savings against £1600 on day 231 is £0.21917808219178084
savings against £1600 on day 232 is £0.21917808219178084
savings against £1600 on day 233 is £0.21917808219178084
savings against £1600 on day 234 is £0.21917808219178084
savings against £1600 on day 235 is £0.21917808219178084
savings against £1600 on day 236 is £0.21917808219178084
savings against £1600 on day 237 is £0.21917808219178084
savings against £1600 on day 238 is £0.21917808219178084
savings against £1600 on day 239 is £0.21917808219178084
savings against £1600 on day 240 is £0.21917808219178084
savings against £1800 on day 241 is £0.24657534246575347
savings against £1800 on day 242 is £0.24657534246575347
savings against £1800 on day 243 is £0.24657534246575347
savings against £1800 on day 244 is £0.24657534246575347
savings against £1800 on day 245 is £0.24657534246575347
savings against £1800 on day 246 is £0.24657534246575347
savings against £1800 on day 247 is £0.24657534246575347
savings against £1800 on day 248 is £0.24657534246575347
savings against £1800 on day 249 is £0.24657534246575347
savings against £1800 on day 250 is £0.24657534246575347
savings against £1800 on day 251 is £0.24657534246575347
savings against £1800 on day 252 is £0.24657534246575347
savings against £1800 on day 253 is £0.24657534246575347
savings against £1800 on day 254 is £0.24657534246575347
savings against £1800 on day 255 is £0.24657534246575347
savings against £1800 on day 256 is £0.24657534246575347
savings against £1800 on day 257 is £0.24657534246575347
savings against £1800 on day 258 is £0.24657534246575347
savings against £1800 on day 259 is £0.24657534246575347
savings against £1800 on day 260 is £0.24657534246575347
savings against £1800 on day 261 is £0.24657534246575347
savings against £1800 on day 262 is £0.24657534246575347
savings against £1800 on day 263 is £0.24657534246575347
savings against £1800 on day 264 is £0.24657534246575347
savings against £1800 on day 265 is £0.24657534246575347
savings against £1800 on day 266 is £0.24657534246575347
savings against £1800 on day 267 is £0.24657534246575347
savings against £1800 on day 268 is £0.24657534246575347
savings against £1800 on day 269 is £0.24657534246575347
savings against £1800 on day 270 is £0.24657534246575347
savings against £2000 on day 271 is £0.27397260273972607
savings against £2000 on day 272 is £0.27397260273972607
savings against £2000 on day 273 is £0.27397260273972607
savings against £2000 on day 274 is £0.27397260273972607
savings against £2000 on day 275 is £0.27397260273972607
savings against £2000 on day 276 is £0.27397260273972607
savings against £2000 on day 277 is £0.27397260273972607
savings against £2000 on day 278 is £0.27397260273972607
savings against £2000 on day 279 is £0.27397260273972607
savings against £2000 on day 280 is £0.27397260273972607
savings against £2000 on day 281 is £0.27397260273972607
savings against £2000 on day 282 is £0.27397260273972607
savings against £2000 on day 283 is £0.27397260273972607
savings against £2000 on day 284 is £0.27397260273972607
savings against £2000 on day 285 is £0.27397260273972607
savings against £2000 on day 286 is £0.27397260273972607
savings against £2000 on day 287 is £0.27397260273972607
savings against £2000 on day 288 is £0.27397260273972607
savings against £2000 on day 289 is £0.27397260273972607
savings against £2000 on day 290 is £0.27397260273972607
savings against £2000 on day 291 is £0.27397260273972607
savings against £2000 on day 292 is £0.27397260273972607
savings against £2000 on day 293 is £0.27397260273972607
savings against £2000 on day 294 is £0.27397260273972607
savings against £2000 on day 295 is £0.27397260273972607
savings against £2000 on day 296 is £0.27397260273972607
savings against £2000 on day 297 is £0.27397260273972607
savings against £2000 on day 298 is £0.27397260273972607
savings against £2000 on day 299 is £0.27397260273972607
savings against £2000 on day 300 is £0.27397260273972607
savings against £2200 on day 301 is £0.30136986301369867
savings against £2200 on day 302 is £0.30136986301369867
savings against £2200 on day 303 is £0.30136986301369867
savings against £2200 on day 304 is £0.30136986301369867
savings against £2200 on day 305 is £0.30136986301369867
savings against £2200 on day 306 is £0.30136986301369867
savings against £2200 on day 307 is £0.30136986301369867
savings against £2200 on day 308 is £0.30136986301369867
savings against £2200 on day 309 is £0.30136986301369867
savings against £2200 on day 310 is £0.30136986301369867
savings against £2200 on day 311 is £0.30136986301369867
savings against £2200 on day 312 is £0.30136986301369867
savings against £2200 on day 313 is £0.30136986301369867
savings against £2200 on day 314 is £0.30136986301369867
savings against £2200 on day 315 is £0.30136986301369867
savings against £2200 on day 316 is £0.30136986301369867
savings against £2200 on day 317 is £0.30136986301369867
savings against £2200 on day 318 is £0.30136986301369867
savings against £2200 on day 319 is £0.30136986301369867
savings against £2200 on day 320 is £0.30136986301369867
savings against £2200 on day 321 is £0.30136986301369867
savings against £2200 on day 322 is £0.30136986301369867
savings against £2200 on day 323 is £0.30136986301369867
savings against £2200 on day 324 is £0.30136986301369867
savings against £2200 on day 325 is £0.30136986301369867
savings against £2200 on day 326 is £0.30136986301369867
savings against £2200 on day 327 is £0.30136986301369867
savings against £2200 on day 328 is £0.30136986301369867
savings against £2200 on day 329 is £0.30136986301369867
savings against £2200 on day 330 is £0.30136986301369867
savings against £2400 on day 331 is £0.32876712328767127
savings against £2400 on day 332 is £0.32876712328767127
savings against £2400 on day 333 is £0.32876712328767127
savings against £2400 on day 334 is £0.32876712328767127
savings against £2400 on day 335 is £0.32876712328767127
savings against £2400 on day 336 is £0.32876712328767127
savings against £2400 on day 337 is £0.32876712328767127
savings against £2400 on day 338 is £0.32876712328767127
savings against £2400 on day 339 is £0.32876712328767127
savings against £2400 on day 340 is £0.32876712328767127
savings against £2400 on day 341 is £0.32876712328767127
savings against £2400 on day 342 is £0.32876712328767127
savings against £2400 on day 343 is £0.32876712328767127
savings against £2400 on day 344 is £0.32876712328767127
savings against £2400 on day 345 is £0.32876712328767127
savings against £2400 on day 346 is £0.32876712328767127
savings against £2400 on day 347 is £0.32876712328767127
savings against £2400 on day 348 is £0.32876712328767127
savings against £2400 on day 349 is £0.32876712328767127
savings against £2400 on day 350 is £0.32876712328767127
savings against £2400 on day 351 is £0.32876712328767127
savings against £2400 on day 352 is £0.32876712328767127
savings against £2400 on day 353 is £0.32876712328767127
savings against £2400 on day 354 is £0.32876712328767127
savings against £2400 on day 355 is £0.32876712328767127
savings against £2400 on day 356 is £0.32876712328767127
savings against £2400 on day 357 is £0.32876712328767127
savings against £2400 on day 358 is £0.32876712328767127
savings against £2400 on day 359 is £0.32876712328767127
savings against £2400 on day 360 is £0.32876712328767127
savings against £2600 on day 361 is £0.35616438356164387
savings against £2600 on day 362 is £0.35616438356164387
savings against £2600 on day 363 is £0.35616438356164387
savings against £2600 on day 364 is £0.35616438356164387
savings against £2600 on day 365 is £0.35616438356164387
total savings over year is £65.8904109589041
So what about if I had a lump sum sitting in the Santander 123 that I was drip-feeding from. Say, £20,000. The AER is 3% there, and I don't think there is a limit on how much I can deposit. So would the rough yearly interest be £20,000 * .03 = £600? Or have I got that wrong as well?
Thanks again.0 -
Or have I got that wrong as well?
Thanks again.
yes, £600 is the interest you would get if the £20000 sat in the account for the whole year. It does not because of drip feeding into the 5% account. Assume you deposit the 20000 in equal parts over the year. You will have half the money in at 6 months, before that less then half the money, after that more than half. So as a first approximation the full interest will be half of £1000 (20000 x 5%). It will not be exactly because of the compounding as the deposit gets bigger thoughout the year, but you only get paid interest on money in the account, obviously in the first months there is not much money thus less interest.0 -
But can I not just deposit £20,000 straight into the Santander 123? Are you saying I can't put in more than a certain amount a month into the current account? I know that I have a max of £200 in the ESaver, but didn't think that applied to the 3% 123 Account.0
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You need to clarify exactly what you want to do. In the first post you say feed the saver from the 123. That means the 123 will not have a constant 20000 in it so cannot get the max interest for the year unless you constantly top it up to 20000 as soon as there is a withdrawal.
The esaver is worthwhile because each 200 gets 2% more than any equivalent time it would sit in the 123 account.0 -
Ok, my bad. Apologies for not being clear.
Aside from the 123 Account Fee and all the necessary caveats (having to deposit at least £500+ a month, two direct debits etc), let us say I have a gross amount of £22,600 altogether. If I were to keep a constant £20,000+ in the 123 Account and drip feed the £2,600 into the ESaver over the course of the year, then (according to the current thread) I would have around a £665 earning of interest?0 -
Ok, £20000 constant in the 123 over a year at 3% would be around £600 interest depending when paid, minus the £60 a year fee, plus any cashbacks off your utilities etc, assume the funding requirements are met from external account. So slightly less if your cashbacks are low.
The esaver can only have £200 a month deposited, so for max £2400 over a year interest is approx half of £120 as above, £60. It will be a bit more since the early months have less interest each month, while the later months have more as the amount increases. So £665 total is pretty much the right amount.
You other £200 would be better off in another account getting some more interest!
0 -
Ok, great. Thanks for all your help.0
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Just one other minor point - if you have £20K in a Santander 123 you can't earn more than the gross interest rate of 2.96% rather than the AER of 3%, since the latter depends on compounding, which isn't achievable if the account is fully funded.
So, the starting point for the interest on a fully-funded 123 (before the caveats referred to above re the effect of monthly charges and cashback on overall return from the account) is £20K * 2.96% = £592, which is obviously not massively different from the assumed £600 but possibly worth bearing in mind if trying to fully reconcile everything!0 -
And another postscript:
A good rule of thumb for regular savings accounts is that if you start with and then regularly deposit £x per month, the interest paid on the anniversary will be approximately x times the interest rate promised, times 6.5
e.g. £200 times 0.05 times 6.5
hence Santander's advertising bumpf.0
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