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8/14/2019 Monthly Savings Accounts Interest Calculation
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Interest calculations
Page 1
Monthly Savings Ac
Many banks and building societies offer monthly savings accounts with high interest rates. However,
account is terminated after one year, meaning that each months contribution is invested for progress
As an example, take an account advertised as paying 10% gross AER -
Monthly contribution amount £100.00
Annual interest gross AER 10.00%
Contribution Contribution Capital Monthly Accumulated
Date Amount Balance Interest Interest
Account opened 01/01/09 £100.00 £100.00
01/02/09 £100.00 £200.00 £0.83 £0.8301/03/09 £100.00 £300.00 £1.67 £2.50
01/04/09 £100.00 £400.00 £2.50 £5.00
01/05/09 £100.00 £500.00 £3.33 £8.33
01/06/09 £100.00 £600.00 £4.17 £12.50
01/07/09 £100.00 £700.00 £5.00 £17.50
01/08/09 £100.00 £800.00 £5.83 £23.33
01/09/09 £100.00 £900.00 £6.67 £30.00
01/10/09 £100.00 £1,000.00 £7.50 £37.50
01/11/09 £100.00 £1,100.00 £8.33 £45.83
01/12/09 £100.00 £1,200.00 £9.17 £55.00
Account closed 01/01/10 £1,200.00 £10.00 £65.00
Final balance £1,200.00
Total interest £65.00
Interest received as a % of final balance 5.4%
Average balance £650.00
Interest received as a % of average balance 10.0%
8/14/2019 Monthly Savings Accounts Interest Calculation
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Interest calculations
Page 2
ounts
the actual interest received will amount to a little over half of that advertised due to the fact that the
ively less time.
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Interest calculations
Page 3
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Product example
Page 4
Key features:
Company Account Gross Rate Min deposit
Halifax Regular Saver 10.00% £25.00
Barclays Bank 7.49% £20.00
Abbey 7.25% £20.00
Principality BS 7.00% £20.00
Skipton BS Special Saver 6.80% £10.00
Yorkshire BS Regular Saver 6.35% £10.00
£25 (min) £300.00 £16.25
£500 (max) £6,000.00 £325.00
Saver
2008
maximummonthlydeposit limit of
July.
for a year
customer, per year.
standing order
the period of investment.
can continue to be made
online
saver account.
Accounts
MonthlySavings
Fixed MonthlySaver 7
Regular Saver Bond 5
June 2008
Halifax, said
habit."
bonus
rate to 12%AER.
higher 12%gross rate.*
rate:
Monthlydeposit
Invested overterm
Interest over12 months
rate:
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Product example
Page 5
£25 (min) £300.00 £19.50
£500 (max) £6,000.00 £390.00
Ends.
Rate Gross
5.50%
5.25%
5.00%
4.01%
2.07%
2.17%
http://www.hbosplc.com/media/pressreleases/articles/halifax/2008-06-05-HalifaxLau.asp?section=H
Monthlydeposit
Invested overterm
Interest over12 months
nline.co.uk
editors:
accounts:
Nominated
Halifax
Halifax
Bank of
Halifax
Halifax Saver
Halifax Instant
card:
AER/Gross
AER/Gross
AER/Gross
data
Office
07768541555
391249
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Product example
Page 6
£500.00
£250.00
£250.00
£500.00
£250.00
£500.00
End result
£316.00
£6,325.00
Max deposit
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Product example
Page 7
End result
£320.00
£6,390.00
lifax
