We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Shawbrook annual vs monthly interest
Tedness
Posts: 6 Forumite
Hi everyone!
I would like to open a savings account with Shawbrook Bank. There are two options for the interest: 3.65% annually or 3.59% monthly. Does anyone know how I can work out which option would pay more interest? Thanks!
I would like to open a savings account with Shawbrook Bank. There are two options for the interest: 3.65% annually or 3.59% monthly. Does anyone know how I can work out which option would pay more interest? Thanks!
0
Comments
-
They're the same, i.e. (1+0.0359/12)^12 = 1.0365 (maybe a penny or two either way in rounding).1
-
You compare the AER, which is the same, it's just that with monthly interest payments you see it being compounded whereas with annual you don't.Tedness said:Hi everyone!
I would like to open a savings account with Shawbrook Bank. There are two options for the interest: 3.65% annually or 3.59% monthly. Does anyone know how I can work out which option would pay more interest? Thanks!
1 -
They both have an AER rate of 3.65% so they would pay the same if you kept the monthly interest in the accountSee the explanation of AER vs Gross
1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.1K Spending & Discounts
- 245K Work, Benefits & Business
- 600.5K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards