1k @ 7.25% C.a.r

[Cobra]

I am puzzled at how the banks work out the interest per annum. If i put €10K into the Hallifax Flexey account @ 5.15% and put similar amount into a monthly account @ 7.25% over a year. It seems i will get more interest from the 5.15%. Would i be correct , and would some one be able to tell me how the calculation for drip feed every month @ 7.25% is worked out.

 

[ClubMan]

See here.

 

[Cobra]

I looked up the site you suggested and thanks for that. but im still confused as to what the actual total interest (or actual balance should show) after 1 year drip feeding in at 1k per month at 7.25%

 

[ClubMan]

That's a bit more difficult to calculate (well for me anyway!). You'd need to calculate the interest returns at 5.15% (or better still 5.22% with First Active eSavings) on €10K reducing by €1K each month until after 10 months you have lodged the lot into a c. 7% regular saver account (the annual returns on which you can get with the calculator linked in the other thread). Maybe somebody else can crunch the numbers and give you an idea?

 

[Kingdomkerry]

Where did you get the 7.25% rate?

 

[Cobra]

Where did you get the 7.25% rate?

I read in a recent thread that Irish Nation Wide were going to start an account soon @ 7.25% . What i want to know is what my actual balance would show at the end of year one asuming i drip feed 1k every month for 12 months.