Monthly vs Annual Interest

jamesd

free4440273, the Kaupthing Edge bond paying only 7.01% would not be more lucrative over one year than the average of 8.4% on the 6000 that you'd get from a 6.5% feeder account plus a 10% regular saver.

free4440273

jamesd wrote: »

free4440273, the Kaupthing Edge bond paying only 7.01% would not be more lucrative over one year than the average of 8.4% on the 6000 that you'd get from a 6.5% feeder account plus a 10% regular saver.

I'll edit my post;)

YorkshireBoy

jamesd wrote: »

A more accurate calculation is 6.5 times the regular saver rate plus 5.5 times the other rate then divide that by 12: (6.5 * 10 + 5.5 * 6.5) / 12 = 8.4%

Thanks for that one-liner jamesd (I normally use a much more complicated method for calculating the overall rate).

For anyone else trying to use a calculator to check it works, use the additional parenthesis shown below...

(6.5 * 10 + (5.5 * 6.5)) / 12 = 8.4%

allisond

Now there's some calculations for you!!

Thanks so much for the help -most appreciated.

Looks like i'll be getting my calculator out tonight!!:rolleyes:

Mikeyorks

If it's the Halifax Regular saver you're aiming at? Consider dropping £5k of the money into their Guaranteed Saver (it becomes a Guaranteed Saver {Reward} as long as no withdrawals) at 6.25%. That way you get 12% on the Reg Saver. But don't forget to ask for gross interest on both accounts .. Halifax don't generally do paper R85's ..... you either specify gross over the 'phone or online.

As long as you're getting over 5.85% (circa) on the £5k ... it makes the extra 2% worthwhile.