first active regular savings-does this interest seem very low?

S

speedy

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could anyone tell me if i am dreaming that this interest is very low?

i started a first active regular savers account in january. i save €400 a month. after the first quarter(this is when the interest is added) my money earned €16. therefore €16 on €1600 for 4 months savings. the rate is 7.15% aer.

this just seems very low to me, i've contacted first active but they've told me they've to look up the system. they're not sure of it themselves:rolleyes:

possibly it accumulates over the year? sorry if this is a really stupid question, but i'd prefer to ask silly questions here than appear to be a complete twit on the phone to them!
 
Sounds about right to me.

If we assume that the first €400 was on deposit for three months, the second €400 for two months and the third €400 for one month that gives interest of 7.15% * (400 * 3/12 + 400 * 2/12 + 400 * 1/12) = 7.15% * 200 = 14.30.

Regards
Homer
 
Agree with you Homer, and after DIRT that's about 11 euro. Speedy has been paid too much and should keep the head down.:D
 
Harchibald said:
Agree with you Homer, and after DIRT that's about 11 euro. Speedy has been paid too much and should keep the head down.:D
Click to expand...

I know you're joking but there's probably a bit more interest seeing as it's been a bit more than 3 months and there also might be a few days on a fourth deposit of €400.

Overall it looks just right.

OP, it's not going to be 7.15% on the full 1600, only one of those deposits have been in from the start, and the latest deposit will have earned very little so far. Also, it's not quite 4 months if you opened it in January, at most a little over 3 and a half.
 
thanks for all your replies and helping my brain figure this out. at least i didn't make a holy show of myself by going in to first active:eek:
 
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