Halifax High Interest Current Account

sebfrogs

Hello ,
Could someone help me to understand this account . If i put £2500 , how much interest , in £ I will received per month .
is it % 6.17 of £2500 per month ?
Thanks

CLAPTON

If you save £ 100 for a full year and the AER (annual equivalent rate) is 6.17% then after 12 months you will earn £6.17 .. gross before tax

obvioulsy less each month

bristol_pilot

If you maintain the balance at £2500 exactly (withdrawing the interest as it is paid) you get the nominal rate of 6%, giving you 6%/12 times £2500 less 20% tax which is £10 per month on average.

Interest is calculated daily (I think), so the exact amount you get in monthly interest depends on the number of days in the month.

The headline rate for this account is 6.17% AER which includes the effect of compounding (includes interest on the interest paid in the previous month and left in the account). See CLAPTON's example. I don't think you can achieve this AER if the balance is £2500 or above all the time because the rate falls to 0.1% on balances above this.

I have one of these accounts and generally get between £9 and £10 per month as Al Mac says.

JonnyBravo

bristol_pilot wrote: »

I have one of these accounts and generally get between £9 and £10 per month as Al Mac says.

Snap..... it's usually a few pence short of £10 due to cash withdrawls and not topping it back up for a day or two etc

sebfrogs

Thanks a lot for your help