INTEREST. could one of you bright types work this out?

pfpf

i was wondering how you work out what interest should be paid on a given amount at a certain time (does that make sense?)

anyway here is my statement from Lloyds. its the 8% regular saver that has just hit year 1.

you will see interest is gross as i am a non tax payer, so what should the interest total be and is there a calculator anywhere to work it out or a calculation i can use for future reference.

thank you.

YorkshireBoy

pfpf wrote: »

i was wondering how you work out what interest should be paid on a given amount at a certain time (does that make sense?)

Interest is calculated daily on the closing balance as Close bal x 8% / 365.

you will see interest is gross as i am a non tax payer, so what should the interest total be

Knocked up a quick spreadsheet and I make it £181.15

and is there a calculator anywhere to work it out or a calculation i can use for future reference.

I've never seen a calculator for irregular payments; only for 'same day each month' regular savers, for which you'd use:

end of year balance x int rate / 12 x 6.5 = gross interest.

pfpf

YorkshireBoy wrote: »

Knocked up a quick spreadsheet and I make it £181.15.

your spreadsheet is wrong, it was actually £181.97

thanks alot. i just wanted to make sure interest was correct. :beer: