Halifax Regular Savings Account

Nediachick

Just wondered if anyone could shed some light on the problem I'm having - I opened a Halifax Regular Saver Account for my son (as Martin suggested) because it pays 10% interest - now here's the problem: I paid in £45 per month for 12 months which = £540, and thought that the interest would be exactly what it said - 10% (£54). But no, the interest he got was £28.96.
Now, am I being dense here or is the interest worked out in some other way? Any help would be much appreciated.
Many thanks.

The_Fiddler_2

The first month you only had £45 in the account so you get 10%/12 of that, second month £45 + £45 = £90, so 10%/12 of £90 etc up to the 12 months.

Nediachick

Ah, ok got it now. Many thanks

Jonbvn

I think may people have the same understanding as the OP. This is the whole reason that RS a/c's are not quite as attractive as the headline rates would have you believe.