What rate is this please ?

glitterygert

Hi I put £15.000 into HSBC online saver, on 14th Oct, and today I have had the first interest payment of £43.98, can anyone tell me what the % is, I know it is not for the full month, so could anyone work out what the full month would be, I can't remember what the % was, I think it was 6.25% AER, but can't think what the gross was. Sorry feel like a real airhead.

(she's not well you know lol )

Froglet

Of course you aren't!! As this account has now been withdrawn,it is not easy to find out the rate,although if you go further down the HSBC interest rates page,it is under accounts no longer sold.

It IS 6.25%.I thought it was a good account,still do, but i needed some money out last month and ended up having to take the whole lot out so as not to lose interest on the balance.Mind you it is a very good way of ensuring you DON'T spend it!!

pashish1

HSBC onlin esaver is the worst place to put your money in......now is th erigh ttime to put your 15000 somewhere else.....

glitterygert

Hi Pashish1, can you tell me why? also can't believe 60 views and only 2 replies.

YorkshireBoy

You need to use the gross p.a. rate to calculate your interest.

£15,000 x 6.08% / 365 x n =

where n = number of days in the month.

gt94sss2

glitterygert wrote: »

Hi I put £15.000 into HSBC online saver, on 14th Oct, and today I have had the first interest payment of £43.98, can anyone tell me what the % is, I know it is not for the full month, so could anyone work out what the full month would be, I can't remember what the % was, I think it was 6.25% AER, but can't think what the gross was.

The interest rates are listed here.

The AER is 6.25% with the Gross rate being 6.08% and the net rate 4.86%

Regards
Sunil

ManAtHome

Hok, here goes...

6.25% gross would be 5% net, so a full year would give you £750. Dividing that by £43.98 gives slightly over 17 days (17.05), so sounds about right.

[edit] thanks for the rates YB/Sunil - more confussing, that works out around 16.6 days... maybe it was opened at 4pm..?

masonic

glitterygert wrote: »

also can't believe 60 views and only 2 replies.

There are people on this site that go to great lengths to find information for people that they could have found out for themselves had they bothered to do the legwork. Sadly, some of those people asking questions here feel as though they have a right to expect that sort of commitment from everyone and feel the need to complain when they don't get their free lunch.

Edit: It looks like the thread has still been viewed 60 times, yet I know this is the first time I looked at it. Maybe the counter is broken.

YorkshireBoy

ManAtHome wrote: »

[edit] thanks for the rates YB/Sunil - more confussing, that works out around 16.6 days... maybe it was opened at 4pm..?

I couldn't get it to work out exactly either. I tried 365 days, 366 days (2008 is a leap year), and 17/18 days earning interest depending on whether the pay from the date of deposit or the day after.

Maybe 6.08% is the 'simple' rate (2 decimal places), and the true gross p.a. rate is 6.08????%.

gt94sss2

For what its worth, the interest on £15,000 left in the account for a full month (365/12=30.42 days!) at 6.08% would be £76 gross of tax or £60.80 net of tax

I suspect interest is calculated daily, so the exact figure will depend on the number of days in a month etc..

Regards
Sunil

glitterygert

Masonic I was not complaining, and it wasn't a question that I couldn't be bothered to find the answer, hence me saying that I was an airhead, I didn't know how to work out the gross rate, for the amount of time my money had been in the account (less than a month), and I do thank everyone very much for their help and their commitment to this board, that's what I thought it was here for to ask for help, won't bother in future