Hi,
I'm looking for advice regarding AIB parent saver accounts I have for my two children.
the format is that I lodge the CB of €140 p/m into the parent saver account.
This account earns 3.75% interest
At the end of the year of saving, the balance is transferred into the corresponding deposit account earning 1% interest.
My Daughter's birthday is in March so today the lump was transferred to the deposit account.
My online access only allowed for transactions back to the previous September to be visible. As I could see no interest added - I rang AIB and they informed me that interest is calculated daily but added in April.
I asked the questions:The fact that my balance reverts to zero in March - does this not affect interest earned?
And is only one payment subject to interest?
I was told that it didn't as the interest is calculated daily so from next April I should see the interest added from the previous year even though my account emptied in March.
Still doesn't this affect the cumulative compound interest????
I then asked what the interest earned in the previous year. It was €42.12 before DIRT and €31.08 after DIRT.
This was based on savings from April 10 to April 11.
My lodgements have always been in line with the CB payment. I wonder was it €160 in that timeframe.
Anyway based on €140 and 3.75% I found an interest calculator on monthly installments online that suggested that the interest should be €68. I thought that €48 sounded low.
Does this all seem right or am I being penalised for emptying the account in March?
Many thanks,
ORla
I'm looking for advice regarding AIB parent saver accounts I have for my two children.
the format is that I lodge the CB of €140 p/m into the parent saver account.
This account earns 3.75% interest
At the end of the year of saving, the balance is transferred into the corresponding deposit account earning 1% interest.
My Daughter's birthday is in March so today the lump was transferred to the deposit account.
My online access only allowed for transactions back to the previous September to be visible. As I could see no interest added - I rang AIB and they informed me that interest is calculated daily but added in April.
I asked the questions:The fact that my balance reverts to zero in March - does this not affect interest earned?
And is only one payment subject to interest?
I was told that it didn't as the interest is calculated daily so from next April I should see the interest added from the previous year even though my account emptied in March.
Still doesn't this affect the cumulative compound interest????
I then asked what the interest earned in the previous year. It was €42.12 before DIRT and €31.08 after DIRT.
This was based on savings from April 10 to April 11.
My lodgements have always been in line with the CB payment. I wonder was it €160 in that timeframe.
Anyway based on €140 and 3.75% I found an interest calculator on monthly installments online that suggested that the interest should be €68. I thought that €48 sounded low.
Does this all seem right or am I being penalised for emptying the account in March?
Many thanks,
ORla