Interest Rate for Nationwide Flex 14 February at 4:32PM in Savings & investments 5 replies 366 views

Martin666_2

I was looking at rates and apparently Nationwide Flex Direct is paying 5% for the following £1500 initial deposit, then Max deposit £1000 per month for 12 months.

I put that into a spreadsheet, adding the £1000 each month + interest and get the following. I can't believe I'd end up with £5k interest though. Have I misread or miscalculated?

Thanks

Month	1	2	3	4	5	6	7	8	9	10	11	12	Tot
Balance	£1,500.00	£2,575.00	£3,703.75	£4,888.94	£6,133.38	£7,440.05	£8,812.06	£10,252.66	£11,765.29	£13,353.56	£15,021.23	£16,772.30
Interest	£75.00	£128.75	£185.19	£244.45	£306.67	£372.00	£440.60	£512.63	£588.26	£667.68	£751.06	£838.61	£5,110.91

Clive_Woody

5% interest per annum, not per month

JGB1955

You've added on 5% per month, not per annum.  The interest in month 1 would be £6.25.

refluxer

I think you've misunderstood - you only get 5% on the first £1500 and, as mentioned above, that's PA.

Paying in £1000/month (eg. your salary or pension) is presumably just a requirement for that particular current account.

eskbanker

Martin666_2 said:

Have I misread or miscalculated?

Both of the above - the 5% is an annual interest rate, not a monthly one, even though it'll be paid monthly, and it's only paid on balances of up to £1500 too....

Martin666_2

Thanks all, I suspected I was pretty wrong LoL