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Interest on savings accounts
bradc
Posts: 184 Forumite
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You're right about the balance/interest increasing every month, so if it's 5.75% monthly, you'll end up with more than that at the end of the year. The account should have quoted a higher AER which should reflect this. Alternative is that it's 5.75% AER, so the monthly rate will be lower.
Sure there's an article on the main site - look for compounding.0 -
One account that pays annually is 6.05% AER and the monthly one is 5.75% so this explains it.
Thanks for confirming.
Cheers
Brad0
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