Nationwide to axe 5% regular savings account on Friday

rcast1989

I am sorry I am still not following, in that case wouldn't it be:
Month 1= 5% @ £12.5- £250 balance
Month 2= £25- £500
Month 3= £37.5- £750
Month4= £50- £1000.....etc

I put in £250 each month on the first of the month for 12 months will £3000 total upon closure

Frogletina

rcast1989 wrote: »

I am sorry I am still not following, in that case wouldn't it be:
Month 1= 5% @ £12.5- £250 balance
Month 2= £25- £500
Month 3= £37.5- £750
Month4= £50- £1000.....etc

I put in £250 each month on the first of the month for 12 months will £3000 total upon closure

No.

The first payment of 250.00 gets 5% interest for 12 months
The second only gets interest on 250.00 for 11 months.

Etc

rcast1989

Yes ! OK thank you very much that makes sense

dcs34

rcast1989 wrote: »

I am sorry I am still not following, in that case wouldn't it be:
Month 1= 5% @ £12.5- £250 balance
Month 2= £25- £500
Month 3= £37.5- £750
Month4= £50- £1000.....etc

I put in £250 each month on the first of the month for 12 months will £3000 total upon closure

The 5% AER is an Annual Equivalent Rate, so when calculating for each month you'll need to divide the rate by 12.

So:

Month 1 Interest = £250 * 5% * (1/12)
Month 2 Interest = £500 * 5% * (1/12)
and so on...