Interest rate vs. What you get

25 Posts

Hi all, I have the majority of my savings in Tandem bank which allows a 2.95% interest rate I think. I’ve just accrued £58 at the end of this month, but thought with the amount I have in there, I would’ve got more?
My initial calculations suggested I would get £1,400 a year approximately but if you multiply £58 by 12 as a rough calculation, you don’t get to that number..
Sorry for the newbie/silly post but just wanted to check. The amount I have in there is £50k
Thanks,
My initial calculations suggested I would get £1,400 a year approximately but if you multiply £58 by 12 as a rough calculation, you don’t get to that number..
Sorry for the newbie/silly post but just wanted to check. The amount I have in there is £50k
Thanks,
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Did the interest rate change during January?
You can t have had that amount for the full month since you deposited it .
Or if the OP earns less than £17,500, then they can also make use of the savings starter rate.
Interest is calculated daily, so your account balance at the end of each day is multiplied by the gross interest rate, then divided by 365. The daily amounts accrue and are paid gross so your tax position won’t affect the amount received.
.withdrawal, NOT withdrawel ..bear with me, NOT bare with me
.definitely, NOT definately ......separate, NOT seperate
should have, NOT should of .....guaranteed, NOT guarenteed
The rate is shown as 2.52% gross or 2.72% gross with the 0.20% top up. If you choose monthly interest you get the gross rate, not the AER rate which is 0.03% higher to factor in annual interest compounding.
£50,000 would give the following.
£50,000 x 2.52% x 17 days / 365 = £58.68
or
£50,000 x 2.72% x 16 days / 365 = £59.62
This looks like the £50,000 was deposited on about 14th or 15th January.
https://www.tandem.co.uk/products/savings
Thanks!