WHAT is the Annual interest rate on the Yorkshire BS Fixed cash ISA???

SydSnott

Since we are all chasing the best way NOT to loose too much of our precious and hard earned savings, every "point  zero zero one percent" is significant!
Banks and building societies seem to be intent on obfuscating the "actual" deals they are offering presumably in order to either mis direct their hapless investors, or just simply to trick the unwary into deals which are not what they first appear to be.
Yorkshire BS fixed rate Cash ISA being a case in point:
Investing during April, the rate is fixed for the investment at 0.4%, payable at maturity which is May 31st 2022, ergo it is not the normal "Annual" investment, but a  thirteen month period.
My brain hurts from all the number crunching I've been enduring lately.
...just what does 0.4% over 13 months equate to in the real world, so that it can be compared to other products?

eskbanker

Despite it only actually being paid at maturity, the 0.4% is the annual rate, specified as an AER, a standardised measure specifically designed to allow like for like comparison between products.

If the money is in the account for 13 months, you'd earn 0.4% * 13/12 = 0.433%.

The foot of their interest calculator page explains:

Products that are fixed for over 12 months the interest will be added at the end of the fixed term. The above interest earned is an illustrative view only of how much you may earn after 12 months which will not be applied until the end of the fixed period along with other interest accumulated.

SydSnott

eskbanker said:

Despite it only actually being paid at maturity, the 0.4% is the annual rate, specified as an AER, a standardised measure specifically designed to allow like for like comparison between products.

If the money is in the account for 13 months, you'd earn 0.4% * 13/12 = 0.433%.

The foot of their interest calculator page explains:

Products that are fixed for over 12 months the interest will be added at the end of the fixed term. The above interest earned is an illustrative view only of how much you may earn after 12 months which will not be applied until the end of the fixed period along with other interest accumulated.

Thanks for explaining that! It is becoming such a chore every April trying to find "decent homes" for the dwindling fruits of my life's labours where it will be covered by the FSCS and earn a rate that will minimise the real world losses!