Alliance & Leicester - premier 21

cmallaby

Hi

I was wondering "*10.00% AER credit interest is for balances from £1 - £1,000 fixed until 30.04.09. After 30.04.09 rate reverts to Bank of England Base Rate less 1%. Balances over £1,000 earn 0.10% AER."

does this mean that any balance after £1000 would only be 0.1%? or does that mean it would be 10.1%? and therefore only £1000 would receive 10.... also how often does interest happen?

Stompa

cmallaby wrote: »

does this mean that any balance after £1000 would only be 0.1%?

Yes it does.

cmallaby

Didn't mean to appear stupid :P but i thought that was the case... anyhow interests gets added monthly so is that 10% every month? "We work out interest each day and add it to your account each month." ... so is that £100 / month if i had £1000? (as that sounds quite impressive)

McSaver

No you would get 1/12th of the 10% per month.

And on the 10% you need to pay income tax of 20% so that leaves you with an interest rate of 8%.