# Regular Saver Calculator



## docy (20 Mar 2007)

_Is it possible to tell me how to work out how much one could earn from a regular saver account e.g.
100 initial deposit
100 a month thereafter
rate 7.0%
Thanks_


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## ClubMan (20 Mar 2007)

Try this calculator linked from this thread. For your example above €100 p.m. for 12 months at 7% _CAR _yields €1,200 in savings and €45 in gross interest or €36 after _DIRT _is deducted. Note how the headline rates are a little confusing/misleading when you look at the actual returns on drip fed savings since only the first lodgement earns the full 7% and each subsequent lodgement earns progressively less.


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## Remix (20 Mar 2007)

The calculation gets more interesting when you are drip feeding the regular saver from a lump sum. The dwindling lump sum also earns interest and you are looking to determine the additional interest earned by feeding the regular saver account.

For example. Anglo Irish pays 7% pa with a max of €2000 per month (joint a/c).

The challenge: Calculate your addition gain after DIRT by drip feeding 24,000 @ 2000 per month from Northern rock which earns 4.3% 
into Anglo.

The result after one year, I reckon, is an extra €200 in your pocket.


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## docy (20 Mar 2007)

I worked out manually that 100 a month for 12 months @7% will give interest before DIRT of 52.50. This corresponds to amount given in  regular saver calculator.

For a high interest bearing demand/notice account one is probably better keeping it in one of these rather than drip feeding into a regular saver as Remix looked into to?

Thanks


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## Calico (20 Mar 2007)

For lump sums you are better off opening up a rabo/northern rock & dripping it in to all the reg savings a/cs. Ronaldo calculated that over 2 years and maxing contributions you can expect to make an extra 1636 euros before dirt.

See here http://www.askaboutmoney.com/showthread.php?p=328404


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## ClubMan (20 Mar 2007)

docy said:


> I worked out manually that 100 a month for 12 months @7% will give interest before DIRT of 52.50. This corresponds to amount given in  regular saver calculator.


That's because you're talking about 13 monthly contributions of €100 while I was talking about 12 monthly contributions of €100. Enter €100, 13 months and 7% into the calculator that I used and you will get the same result (well €52.60).


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## Peregrine (25 Apr 2007)

Can anyone tell me how the headline rates are calculated and applied? I opened an AIB Regular Saver Account, saved €100 in January, February, and March--but only recieved interest of €1.46 in April on my deposited €300 (after DIRT).

What's up with that?


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## aidan119 (25 Apr 2007)

How much did you expect Peregrine ? I presume you save at the end of each month.
January's deposit was there for 2 mths. So you get 2/12 of the annual interest rate for this €100.
Febs deposit was there for one month. So you get 1/12 of the annual interest rate for this €100.
If you saved the March amount at the end of the month then you won't get much interest for it a few days later.

Take the dirt away from the above and there you have it.


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## sainikudu (7 Dec 2009)

Hey great post. Thanks very much . The post seems to be very much helpful.





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