Help with one year fixed account with monthly interest

Eco_Miser

AER is a calculated figure required by the Regulator for comparison purposes.

Do not use it to calculate your actual interest. The banks don't.

slinger2

I don't think you've said what your tax situation is. The bank won't take any tax off but HMRC will eventually send you a bill if there's tax to pay.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82175415#Comment_82175415

Only when averaged across the year - it's unlikely to be £500 in any individual month as interest payments will generally be based on the number of days in the month, as explained upthread.

BACKTOBACK

https://forums.moneysavingexpert.com/discussion/comment/82175474#Comment_82175474

I dont pay tax. The money is from a compensation payout as i was involved in a serious car accident and will not be able to work for several years

lr1277

https://forums.moneysavingexpert.com/discussion/comment/82175529#Comment_82175529

Though as @eskbanker pointed out, you won’t get £500 every month but an amount based on the number of days in the month. For example you will get less in the first interest payment on or after February than you will get in the first interest payment on or after March.