Discussion in 'Deposits' started by zod, Mar 19, 2012.
Is ulster bank the only bank that offers monthly interest accounts ?
Nationwide UK give the option of monthly interest.
Permanent TSB have a 2 month term deposit that pays 3.55% which automatically rolls so you will get your interest every 2 months.
Just referring to the above. Does it make a difference whether you have monthly interest or annual interest applied to your deposit account.
I have money on deposit with Nationwide UK whereby the interest is put on account every 12 months. i'm assuming this is annual interest being applied. Just wondering, what are the benefits/ if any of monthly over annual interest rate.
If you are using deposit interest to pay living expenses you would rather receive it on a monthly basis, I'd assume.
Deposit interest is taxable income in the year in which it is received.
If you were a Dirt-exempt investor coming near to breaching an annual exemption limit, you might choose monthly interest to keep under the threshold.
Or, if you feared the current Dirt exemption might be withdrawn you would wish to have the gross interest received before any possible change.
Taking the flip side of the coin, the benefit of annual interest is that it usually comes with a higher rate of interest. For example, Nationwide UK apply a lower rate of interest to the accounts that pay monthly interest.
When I saw the way things were going a few years ago, I started to avail of monthly interest on the basis that it would avoid some of the increases in DIRT before the changes were implemented. A relatively small saving I know, but every little helps!
Can somebody help me understand how deposit rates work?
for example; i put 1.000.000 on a time deposit account.
For 30 DAYS = 2.375% for 360 days = 2.750%
What is my intrest for 360 days?
If i put it on 360 days do i get this 2.750% every month totaly payed at the end of the year?
Can somebody explain dis to me?
I'm not sure I understand how you are getting 2.75%.
I think some monthly accounts compound and some don't so not always same. Do you want to tell us what bank product you are looking at.
The easiest way to compare accounts is to use AER. I don't think there are many term accounts that pay monthly interest and those that do sometimes have a lower AER. I have never seen an account that pays you a higher AER if you go the monthly option.
time depost rates @ renter
hi renter, tis is a example of a deposit year table
REGULAR TIME DEPOSIT
DAYS 1,000.00 - 9,999.99SAVINGS
RATE 10,000 - 99,999.991.125
1.750300,000 - 499,999.991.625
1.875500,000 - 999,999.991.750
2.1251MM - 4.99MM2.375
2.7505MM - 9.99MM2.500
2.87510MM AND ABOVE2.750
so whit what do i end over after 360 days if i put in 1.000.000 php ?
Do you want to edit last post, not easy to read.
Separate names with a comma.