First direct savings accounts

nicko33

You can use the savings calculator on this site
http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#saving

to work out total interest when drip-feeding from 1 account to another, you use it in 2 stages

e.g. you have £3000 in a 5.25% account and feed £250/month into an 8% account.

calc 1: how much you get from the Regular Saver
0
+250
8%
1 year 0 months
result = 3128.47 (3000 is capital so 128.47 is the interest)


calc 2: how much you get from the Feeder Account
3000
-250
5.25%
1 year 0 months
result = 72.85 (72.85 is the interest left behind after the 3000 has been withdrawn bit by bit)

total after 1 year = 3128.47 + 72.85 = 3201.32
201.32 interest on 3000 in 1 year is equivalent to 6.71%

3000 left in the 5.25% account for 1 year would become 3157.50