Interest on a multi year bond?

metrobus

I have a Nationwide 3 year fixed rate online bond paying 4.75% gross
If say I had 10000 in it I assume I would get £475 interest the first year.
Would I then get interest on that £475 the 2nd year?
Thank you

Ayr_Rage

The interest is added annually on the date of opening so you will get interest on interest in the second and third years.

They show this in the "estimated balance" table on the website, hopefully your read the Ts and Cs when you opened your bond.

Interest is calculated daily on funds once they have been paid into the Fixed Rate Online Bond during the funding window.

We'll pay the interest on the anniversary of the date you opened your account (regardless of when the account was funded), at the end of the term, and on the day your account closes.

Bigwheels1111

Year 1, £10,475.00

Year 2, £10,972.56

Year 3, £11,493.75

Total interest after 3 year if compounded, £1,493.75

Thumbs_Up

metrobus said:

I have a Nationwide 3 year fixed rate online bond paying 4.75% gross
If say I had 10000 in it I assume I would get £475 interest the first year.
Would I then get interest on that £475 the 2nd year?
Thank you

Try a interest compound calculator, you can play around with your real numbers.

https://monevator.com/compound-interest-calculator/