northern rock paying 9.49% till March 1st !

rail.link

Isn't it 6.99% for 2 months and 6.49% for 10 months ?

If so, it's 6.57% for 12 months.

sloughflint

Shoi, stop it!!!!
You are confusing people.
Trust me, your maths is wrong. I'll Pm you.

Aegis

shoi wrote: »

here is 100 pounds.
2 months later here is 100.50, or put it another way 25pence (0.25%) PER MONTH
and if it kept goig for the rest of the year (which it doenst but thats not the point), if it kept going it would acumulate to 103
which is 3% annual interest, on top of the 6.49

gorblimey

It's a bonus to your interest rate of .5% for 2 months. It is not a bonus of 0.5% for putting your savings in their bank account for 2 months. The bonus you describe would be fantastic, but a temporary raise of 3% for a normal savings account would almost certainly bankrupt any financial institution that tried it simply because they would be paying out a fortune to the masses of inbound savers.

You are misinterpreting the offer, and that's why everyone else is getting different answers to you.

tudie

Sorry Shoi-can't agree.

£100 at 0.5% = 50p per year
i.e. 4.16p per month
8.3p for the 2 months

The rate is spread over 12 months so you only actually get two twelfths of 0.5%

shoi

tudie wrote: »

Sorry Shoi-can't agree.
The rate is spread over 12 months so you only actually get two twelfths of 0.5%

Now if that were true then I would be wrong.

sloughflint

shoi wrote: »

Now if that were true then I would be wrong.

I got your PM Shoi. You are clearly not convinced if you say that it's 9.5% for Jan and Feb. Here goes:

So all savers who had a savings account with us on
1 December 2007 and who keep their money invested with us until 1 March 2008 will receive an extra guaranteed bonus of 0.50% gross on their savings. The bonus will be calculated daily on the balance of your Account between 1 January 2008 and 1 March 2008. Any interest which is payable due to this bonus will be added to your Account shortly after 1 March 2008.

0.5% for 60 days.
0.5/36500=0.000013698, (1+ 0.000013698)^60= 1.0008225
so the extra on your £100 at beginning of March is 100*1.0008225-100=8.22p extra on top of what you would get at the normal rate.
The only bit I'm not sure about is the fact that they are adding that bit to your account on 01/03 so that bonus part will get compounded I think whereas the normal rate part won't ( I think) since that will be paid at the usual interval whenever that is.
Sorry that last bit probably complicates the issue more. HTH

shoi

sloughflint wrote: »

0.5% for 60 days.
( 1+ 1.005^60)= 1.008225
so the extra on your £100 at beginning of March is 100*1.008225=8.22p extra on top of what you would get at the normal rate.
.

I get where you are coming from, but that's not what it says.

If it said a bonus of 0.5% PER ANNUM (or they used some other words meaning a temporary uplift of 0.5% on top of the prevailing rate) then I would agree

But it doesn't say that it says a bonus of 0.5% gross full stop. (calculated daily not compunded less tax yadda yadda) That logically can only mean 0.5% of the amount deposited, or approx 3% annualised.

One thing for sure is I'll report back in March

Steve

sloughflint

I mucked up my figures. Hopefully ok now but in essence not much change in the reasoning. I'll stick to my interpretation.
Yes do report back. Hope you are right.It would be very nice indeed.

nilrem_2

shoi wrote: »

It's 9.5 percent more or less. Its not 6.99% I'm staggered that nobody else on the forum seems to be able to do this sum properly.

Lol, If NR were offering a deal giving an interest rate as your maths suggest (wrong BTW) there would be more long queues outside NR branches only this time they would be begging NR to accept their cash as savings!

Jonbvn

Shoi,

If you are correct, I will east my shoes on tower bridge butt naked.