Interest on savings help.

I’ve an online regular saver account with PTSB. , how much interest should I have earned @ 2.50% interest rate per year. The figure doesn’t add up for me. On €15,208 I got interest of €188 . 56 & dirt @€92.86 , I worked out interest should be €255 & dirt should be €125. Can someone shed some light please ?

I estimate gross interest of 190.

You saved each month, and at the end of the year you had accumulated 15,208.

Let's assume your average balance during the year was half of the 15,208.

(0.5)(15,208)(0.025) = 190.10 gross interest.


Maybe you might explain how you arrived at €255?

Is it not 2.5 percent of my 15,000 ?

Was the 15k on deposit for the whole 12 months?

You mentioned regular saver. I presumed this means you saved each month, and that accumulated to 15k.

The first 1/12 was on deposit for 12 month.
The second 1/12 earned interest for 11 months.
..............................................
The final 1/12 earned interest for just the last month.

pat12345678 said:

Is it not 2.5 percent of my 15,000 ?

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No. Interest is calculated daily but your balance changes each month.

A year a go you had a balance of approx €3k that earned a full 12 months of interest.

A month later your deposited and additional €1k and that earned interested for 11 months. Another month later a further €1k was added. that attracted interest for 10 months... And so on.

So very little of the €15k was there for the full year.


To earn 255 you would needed to have the full €15,208 on deposit for the whole year.

pat12345678 said:

Is it not 2.5 percent of my 15,000 ?

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No. It's 2.5% a year, and you didn't have €15,000 there for a year.