Interest Calculator Question

AndyCF

Not sure if this is the right forum area for this question, sorry.

The answer is likely just a simple maths one but for the moment the solution escapes me. To make it worse I'm 90% sure I've actually seen a calculator online to do it 'this way around' as the calcs I looked at earlier wanted to know the rate% which I do not have to hand.

All I would like to see is an estimated interest payout per annum if an account held £xyz in it, assuming that the sum held did not increase or decrease for the year, ie: static.

This would be for a current account rather than a savings, however I suppose if the account pays interest its not going to matter.

I could probably simplfy this by asking the following , purely for educational purposes rather than anything else , I wish I did have said sums!

Typical yearly payout (the interest you would receive, simple as that) if you had...

£100
£250
£1000
£5000
£10,000
£25,000
£100,000
£200,000

... stashed in said current account.

For say half a dozen of the most 'popular' UK banks with a standard, regular everyday type current account that did pay a bit of interest even if it was a very low % . I'm estimating say something like a monthly acc charge of £5-£20 into this too.

The results do *not* have to be accurate by any means, just a rough estimation would be fine, as I say its merely an educational question for me.

Thanks in advance for any assistance.

eskbanker

AndyCF wrote: »

I'm 90% sure I've actually seen a calculator online to do it 'this way around' as the calcs I looked at earlier wanted to know the rate% which I do not have to hand.

Are you perhaps thinking of https://www.bankaccountsavings.co.uk/calculator, which works on the basis of optimising interest return for sums of a given size, based on using multiple accounts? I can't see any other way that anyone could estimate interest without knowing the applicable rate(s) for your chosen account(s)....

AndyCF wrote: »

I'm estimating say something like a monthly acc charge of £5-£20 into this too.

Why? There are some current accounts with monthly charges but most don't, and making allowances like that could have a significant effect on your analysis, especially for smaller sums.

NoMore

That's what APR does.

Just get the APR of each account and multiply the amount by it and you will get you what you want.

Not sure why you want to do this for different static amounts though

NoMore

Complications arise because different accounts may have different limits before/after which interest is applied. Or charges, or Opening offers etc.

YorkshireBoy

NoMore wrote: »

That's what APR does.

Just get the APR of each account and multiply the amount by it and you will get you what you want.

Not sure why you want to do this for different static amounts though

APR relates to interest charged on debt. AER is what the OP needs to use.

AndyCF

Thanks all.

I did look at an online 'quick calculator' but then realised I'd have to look at quite a few different banks to determine what they paid, and the few I glanced at did not appear to have any interest on some current accounts.

I do know the acc I used to have a few years ago (was LloydsTSB before the split) charged me x per month but did pay interest.

Differing amounts was simply to gauge exponential factors into it. As I say it is merely educational maths rather than anything else, honestly. I just was not really sure which area of the site to post it into. I wish I did have a few £K floating about without a purpose!

I also suspect that the % rate might ( ? ) change even with the same account if you had say a static 100 or a static 10000 in it, perhaps it would only change by say 0.1% or so though.

I suppose the next logical question here is now I realise I'll have to do the calculations anyway is simply: Is there an easy to digest single page list of what the major banks offer interest-wise for each account ? Problem here is there are so many differing account types though. Its not important by any means regardless, I may look into it over the weekend when (with a bit of luck) I have a modicum of free time.

AnotherJoe

Just look up to the top of this page where the best interest rates different types of account are outlined.
There's no need and no point in having a list of all accounts since why would you care to know what hundreds of poor rates you wouldn't pick are ?
The calculation is as simple as knowing the annual interest rate (AER) . Multiply that by the amount.
If you want to accumulate over years use a spreadsheet or there are many online calculators that will let you know not just how much £x would be worth at y% but also the effect of regular savings. But that's all hypothetical since rates won't stay constant

eskbanker

AndyCF wrote: »

Differing amounts was simply to gauge exponential factors into it. As I say it is merely educational maths rather than anything else, honestly.

If you believe that differing amounts introduce exponential factors then you definitely need some mathematical education!

Interest returns are almost universally linear, except where there's tiering of rates, but even then there's nothing exponential involved....