Monthly Savings Accounts Interest Calculation
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Interest calculations
Monthly Savings Accounts
Many banks and building societies offer monthly savings accounts with high interest rates. However, the actual interest rec account is terminated after one year, meaning that each months contribution is invested for progressively less time. As an example, take an account advertised as paying 10% gross AER -
Monthly contribution amount Annual interest gross AER
£100.00 10.00%
Contribution Contribution Date Amount Account opened
£100.00 £100.00 £100.00 £100.00 £100.00 £100.00 £100.00 £100.00 £100.00 £100.00 £100.00 £100.00
£100.00 £200.00 £300.00 £400.00 £500.00 £600.00 £700.00 £800.00 £900.00 £1,000.00 £1,100.00 £1,200.00 £1,200.00
Final balance Total interest Interest received as a % of final balance Average balance Interest received as a % of average balance
£1,200.00 £65.00 5.4% £650.00 10.0%
Account closed
01/01/09 01/02/09 01/03/09 01/04/09 01/05/09 01/06/09 01/07/09 01/08/09 01/09/09 01/10/09 01/11/09 01/12/09 01/01/10
Capital Balance
Page 1
Monthly Accumulated Interest Interest
£0.83 £1.67 £2.50 £3.33 £4.17 £5.00 £5.83 £6.67 £7.50 £8.33 £9.17 £10.00
£0.83 £2.50 £5.00 £8.33 £12.50 £17.50 £23.33 £30.00 £37.50 £45.83 £55.00 £65.00
Interest calculations
avings Accounts
es. However, the actual interest received will amount to a little over half of that advertised due to the fact that the d for progressively less time.
Page 2
Interest calculations
fact that the
Page 3
new 10 per cent Regular Saver account, unlike other accounts available in the market this is not linked to a current account. Thursday The new Savers will account is 5th June Open tofrom new benefit available for a 2008 and existing best buy rate limited six customers, one and a period, leading week account per maximum from Monday adult. Account If the account monthly 9th June until available for is closed early deposit limit Each year theaof Sunday 20th limited period or a and capital July. ending 20th withdrawal interest are is 10% gross July 2008. One made, the rate swept into one Key features: interest, fixed regular saver Deposit of interest will six for a year account per between £25 revert tosome the nominated Unlike customer, per and £500Web each Halifax accounts. The other banks, year. month by Saver without regular saver customers are standing order card rate forto account not obliged the period of remains open take a low investment. and deposits interest current can continue Operated account invia to be made branch or order to open online the regular saver account. Regular Savings Accounts Company
Halifax Launche s 10% Regular Saver
Halifax
Product example
Account
Gross Rate
Min deposit
Regular Saver
10.00%
£25.00
Barclays Bank Monthly Savings Abbey Fixed Monthly "This is the Saver 7 Savers who market leading Principality BS Regular Saver maintain an regular savings additionalshow Bond 5 Statistics account. Ittheir is Skipton BS £5000 that in in the UK Special Saver now even Yorkshire nominated 25% of all BS Regular Saver Source: more attractive Halifax savings Moneyfacts Tony Wilcox, for savers to 04 savings accounts have June 2008 head of that establish account will balances of savings at all important earn a further £5000 or said 2 Halifax, regular savings per centThis bonus more. habit." interest rate – means that Savers withone An added taking their in four account less than bonus total interest balances £5000 in can rate to 12% be used to nominated AER. achieve accountthe and higher 12% therefore gross rate.* benefiting Savers from a with 10% over rate: than £5000 in Monthly Invested over nominated deposit term account and £25 (min) £300.00 therefore £500 (max) £6,000.00 benefiting from a 12% rate:
7.49%
£20.00
7.25%
£20.00
7.00%
£20.00
6.80% 6.35%
£10.00 £10.00
Interest over 12 months £16.25 £325.00
Page 4
For further details, or to apply for the Halifax Regular Saver Monthly Invested over account call deposit term 08457 26 36 £25 (min) £300.00 46, visit a £500 (max) £6,000.00 branch or go to www.halifaxo nline.co.uk
Product example Interest over 12 months £19.50 £390.00
Ends.
Note Halifaxto editors: nominated accounts: Nominated account Halifax Websaver Halifax with card Guaranteed Bank of Saver Scotland Halifax Instant Access Premium Halifax Rates forSaver Savings Direct Reward Halifax Instant Halifax Web Account Saver Saver without £1+ card: 4.36% £5000+ AER/Gross 4.40% £25000+ AER/Gross 4.45% AER/Gross *Source CACI market data Clare HalifaxPress Mortimer Paul Office Fincham 07768541555 01422 391249
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=Halifax
Page 5
Product example
Max deposit £500.00 £250.00 £250.00 £500.00 £250.00 £500.00
End result £316.00 £6,325.00
Page 6
Product example End result £320.00 £6,390.00
p?section=Halifax
Page 7
Monthly Savings Accounts
Many banks and building societies offer monthly savings accounts with high interest rates. However, the actual interest rec account is terminated after one year, meaning that each months contribution is invested for progressively less time. As an example, take an account advertised as paying 10% gross AER -
Monthly contribution amount Annual interest gross AER
£100.00 10.00%
Contribution Contribution Date Amount Account opened
£100.00 £100.00 £100.00 £100.00 £100.00 £100.00 £100.00 £100.00 £100.00 £100.00 £100.00 £100.00
£100.00 £200.00 £300.00 £400.00 £500.00 £600.00 £700.00 £800.00 £900.00 £1,000.00 £1,100.00 £1,200.00 £1,200.00
Final balance Total interest Interest received as a % of final balance Average balance Interest received as a % of average balance
£1,200.00 £65.00 5.4% £650.00 10.0%
Account closed
01/01/09 01/02/09 01/03/09 01/04/09 01/05/09 01/06/09 01/07/09 01/08/09 01/09/09 01/10/09 01/11/09 01/12/09 01/01/10
Capital Balance
Page 1
Monthly Accumulated Interest Interest
£0.83 £1.67 £2.50 £3.33 £4.17 £5.00 £5.83 £6.67 £7.50 £8.33 £9.17 £10.00
£0.83 £2.50 £5.00 £8.33 £12.50 £17.50 £23.33 £30.00 £37.50 £45.83 £55.00 £65.00
Interest calculations
avings Accounts
es. However, the actual interest received will amount to a little over half of that advertised due to the fact that the d for progressively less time.
Page 2
Interest calculations
fact that the
Page 3
new 10 per cent Regular Saver account, unlike other accounts available in the market this is not linked to a current account. Thursday The new Savers will account is 5th June Open tofrom new benefit available for a 2008 and existing best buy rate limited six customers, one and a period, leading week account per maximum from Monday adult. Account If the account monthly 9th June until available for is closed early deposit limit Each year theaof Sunday 20th limited period or a and capital July. ending 20th withdrawal interest are is 10% gross July 2008. One made, the rate swept into one Key features: interest, fixed regular saver Deposit of interest will six for a year account per between £25 revert tosome the nominated Unlike customer, per and £500Web each Halifax accounts. The other banks, year. month by Saver without regular saver customers are standing order card rate forto account not obliged the period of remains open take a low investment. and deposits interest current can continue Operated account invia to be made branch or order to open online the regular saver account. Regular Savings Accounts Company
Halifax Launche s 10% Regular Saver
Halifax
Product example
Account
Gross Rate
Min deposit
Regular Saver
10.00%
£25.00
Barclays Bank Monthly Savings Abbey Fixed Monthly "This is the Saver 7 Savers who market leading Principality BS Regular Saver maintain an regular savings additionalshow Bond 5 Statistics account. Ittheir is Skipton BS £5000 that in in the UK Special Saver now even Yorkshire nominated 25% of all BS Regular Saver Source: more attractive Halifax savings Moneyfacts Tony Wilcox, for savers to 04 savings accounts have June 2008 head of that establish account will balances of savings at all important earn a further £5000 or said 2 Halifax, regular savings per centThis bonus more. habit." interest rate – means that Savers withone An added taking their in four account less than bonus total interest balances £5000 in can rate to 12% be used to nominated AER. achieve accountthe and higher 12% therefore gross rate.* benefiting Savers from a with 10% over rate: than £5000 in Monthly Invested over nominated deposit term account and £25 (min) £300.00 therefore £500 (max) £6,000.00 benefiting from a 12% rate:
7.49%
£20.00
7.25%
£20.00
7.00%
£20.00
6.80% 6.35%
£10.00 £10.00
Interest over 12 months £16.25 £325.00
Page 4
For further details, or to apply for the Halifax Regular Saver Monthly Invested over account call deposit term 08457 26 36 £25 (min) £300.00 46, visit a £500 (max) £6,000.00 branch or go to www.halifaxo nline.co.uk
Product example Interest over 12 months £19.50 £390.00
Ends.
Note Halifaxto editors: nominated accounts: Nominated account Halifax Websaver Halifax with card Guaranteed Bank of Saver Scotland Halifax Instant Access Premium Halifax Rates forSaver Savings Direct Reward Halifax Instant Halifax Web Account Saver Saver without £1+ card: 4.36% £5000+ AER/Gross 4.40% £25000+ AER/Gross 4.45% AER/Gross *Source CACI market data Clare HalifaxPress Mortimer Paul Office Fincham 07768541555 01422 391249
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=Halifax
Page 5
Product example
Max deposit £500.00 £250.00 £250.00 £500.00 £250.00 £500.00
End result £316.00 £6,325.00
Page 6
Product example End result £320.00 £6,390.00
p?section=Halifax
Page 7
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