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

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

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.

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.

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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