Instant access with monthly interest

Discussion in 'Deposits' started by zod, Mar 19, 2012.

  1. zod

    zod Frequent Poster

    Posts:
    14
    Is ulster bank the only bank that offers monthly interest accounts ?

    thanks
     
  2. CiaranT

    CiaranT Administrator

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    3,998
    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.
     
  3. PDCAT

    PDCAT Registered User

    Posts:
    23
    Hi Guys

    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.
     
  4. Gervan

    Gervan Frequent Poster

    Posts:
    859
    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    Or, if you feared the current Dirt exemption might be withdrawn you would wish to have the gross interest received before any possible change.
     
  5. CiaranT

    CiaranT Administrator

    Posts:
    3,998
    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.
     
  6. Sarn

    Sarn Frequent Poster

    Posts:
    61
    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!
     
  7. steve11

    steve11 Guest

    hi people,
    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?

    Thanks already

    greets

    steve
     
  8. Renter7

    Renter7 Frequent Poster

    Posts:
    44
    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.
     
  9. steve11

    steve11 Guest

    time depost rates @ renter

    hi renter, tis is a example of a deposit year table



    REGULAR TIME DEPOSIT






    30
    60
    90
    180
    360
    AMOUNT
    DAYS
    DAYS
    DAYS
    DAYS
    DAYS
    1,000.00 - 9,999.99
    SAVINGS
    RATE
    10,000 - 99,999.99
    1.125
    1.125
    1.375
    1.500
    1.625
    100,000 -299,999.99
    1.500
    1.500
    1.625
    1.625
    1.750
    300,000 - 499,999.99
    1.625
    1.625
    1.750
    1.750
    1.875
    500,000 - 999,999.99
    1.750
    1.750
    2.000
    2.000
    2.125
    1MM - 4.99MM
    2.375
    2.375
    2.625
    2.625
    2.750
    5MM - 9.99MM
    2.500
    2.500
    2.625
    2.750
    2.875
    10MM AND ABOVE
    2.750
    2.750
    2.875
    3.000
    3.125


    so whit what do i end over after 360 days if i put in 1.000.000 php ?

    Regards
    steve
     
  10. Renter7

    Renter7 Frequent Poster

    Posts:
    44
    Do you want to edit last post, not easy to read.