Help Re: ISA interest payment

**woody123**

Hi,

Could anyone help me calculate interest on my ISA please as i think Egg have got it wrong..

Their interest rate is 6.05%

I opened the account 23rd June 2007 depositing £750 and then from July onwards i paid in £250 a month so totalling £3000 by the end of march ready for the end of the tax year..

About the 8th or 9th of april i paid in £850 and then at end of April i paid £180 in and also £180 the end of May.

I have made no withdrawals at any time.

My balance come the anniversary of opening the account was £4210..

The only interest i have received is £134.14 when i thought it would be more like £254..

Please put me right if you think i'm wrong.

Thanks for reading

**woody123**

Thanks for your reponse..

I didn't realise it was calculated daily!!!

I still am a little confused by your above calculation though, i have got to £138 now..

_bankrupted

Yes, it's correct (roughly)

As a quick calc. It's as follows

£750 deposited for a whole year
The monthly deposits of the regular payments are the equivalent of depositing £1125 (give or take a few quid) for a whole year (2250/2)

So in effect you have had £1875 deposted for a whole year. And 6.05% of this is £113.44.

I have ignored the other payments near the end of the year.

So as a really quick calc it's correct...