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isa accounts
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Im trying to find the best one?
Im with the abbey but theres are not great, i see this...
http://www.firstdirect.com/savings/regular-saver-isa-overview.shtml
they say 250 a month saved which is 3 grand returns 113 pound profit, but 113 is not 7% of 3 grand?
but apparently thats the best one according to this... http://www.moneysupermarket.com/isap/IsasResults.asp
How do they work out the interest? doesnt look like you can earn a great deal on any of them really?
Im with the abbey but theres are not great, i see this...
http://www.firstdirect.com/savings/regular-saver-isa-overview.shtml
they say 250 a month saved which is 3 grand returns 113 pound profit, but 113 is not 7% of 3 grand?
but apparently thats the best one according to this... http://www.moneysupermarket.com/isap/IsasResults.asp
How do they work out the interest? doesnt look like you can earn a great deal on any of them really?
0
Comments
Most low-risk savings accounts are all going to have crap rates at the moment due to the base rate being so low.
MONTH 1 - £250, so you work out 7% of that, add it on, (£17.50)
MONTH 2 - £517.50, 7% Of that, etc..
I think thats how they work it anyway, kinda like compound interest that u learn in school
Month One: £250 (Work out 7% which is £17.50) then divide by 12 (the amount of months in a year) = £1.45 times 12 (the amount of months this £250 will be in the account when the interest is paid out) = 17.5
TOTAL = £267.5
Month Two: £250 again work out the 7% which is £17.50, then divide by 12, then this time times by 11 since this £250 will only be in there for 11 months. so the interest earned on this £250 will be £17.50 / 12 = £1.45 * 11 = 16.04 so that £250 will be £266.04
you do this for each individual £250 , each time reducing the final multiplication of the monthly interest rate, then adding the values all up at the end.
The only way for that 7% interest rate to equate to 7% of the £3000 that you've saved is if you invest it as a lump sum £3000 in the first month.