What's my interest rate

Soldato
Joined
1 Mar 2003
Posts
5,508
Location
Cotham, Bristol
I signed up to a first direct e-ISA at the end of last the year, and I could have sworn the rate being offered at the time was fixed to 3.something%, and due to change in November down to the base rate, at which point I'd transfer to a better offer anyway.

Anyway was doing a quick check to see what measly interest I'm getting every month.

And as of April 4th it reads

04/04 - Interest: 0.36 - Balance 2576.23
31/03 - Balance: 2575.87

How do I work it out? I'm confused. I don't think my interest is as high as I was offered when signing up
 
Associate
Joined
18 Oct 2002
Posts
2,367
The interest is normally calculated daily and added at the end of the term so if you have only been adding in small amounts every so often its not likely to make a big return. In other words you dont get 3% etc on whatever is in there at the end of the term, unless that money has been in there since day 1.
 
Soldato
Joined
30 Aug 2006
Posts
8,312
Assuming that 36p is 4 days worth of interest.

365/4 = 91.25
91.25 x 36p = £32.85 (annual interest)
(32.85 / 2575.87) x 100 = 1.28% AER
 
Associate
Joined
18 Oct 2002
Posts
2,367
That assumes that he has had the whole amount in the ISA for the whole 12 months which he has already said he hasnt.
 
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