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What's my interest rate

Discussion in 'General Discussion' started by PaulStat, 13 Apr 2010.

  1. PaulStat

    Soldato

    Joined: 1 Mar 2003

    Posts: 5,447

    Location: Cotham, Bristol

    I signed up to a first direct e-ISA at the end of last the year, and I could of 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
     
  2. Immsy

    Wise Guy

    Joined: 18 Oct 2002

    Posts: 2,367

    How long has the money been in the ISA? The full term or only a few months?
     
  3. PaulStat

    Soldato

    Joined: 1 Mar 2003

    Posts: 5,447

    Location: Cotham, Bristol

    Since December, well I've been contributing since December.
     
  4. Immsy

    Wise Guy

    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.
     
  5. weringo

    Sgarrista

    Joined: 30 Aug 2006

    Posts: 8,158

    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
     
  6. Immsy

    Wise Guy

    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.