How does my bank account interest work?

How does my bank account interest work?
by

1 Answer

Answer :

Tthe acronyms are a little different in the UK than the US, but I could make a rough guess and say that you’ll be making somewhere around 5% annually… (if that’s tax free, that seems quite good). For £1000, you would be making about £50 a year or £4.16 a month. That’s not an exact answer, but it should be in right ballpark.
by

Related questions

Have you ever made use of the option to withdraw money from your bank account at the supermarket checkout?

Description : Have you ever made use of the option to withdraw money from your bank account at the supermarket checkout?

Last Answer : Yes. It costs me 50 cents to make a withdrawal of any amount of money in excess of my bill. I have done it a few times for the convenience, but I hate paying a fee.

Can you send money to someone that doesn't have a bank account?

Description : Can you send money to someone that doesn't have a bank account?

Last Answer : You can send cash per mail.

If you do have a bank account, can you close it so the IRS can't put a levy on it?

Description : If you do have a bank account, can you close it so the IRS can't put a levy on it?

Last Answer : Set up a blind trust controlled by someone you can absolutely trust, and move the funds there. You can also use the courts to protect you from a levy that would leave you unable to pay for the basic requirements, like a roof over your head, food, transportation, employment costs, utilities, etc.

How to setup my Paypal account to automatically withdraw money from my bank account?

Description : How to setup my Paypal account to automatically withdraw money from my bank account?

Last Answer : answer:In Paypal, Go to Profile Once in your profile, on the left side of the screen under My Personal Info click on My Money Once in My Money Bank Accounts should be the first listing you ... never transferred money into my account. I just have a bank account set as my primary form of payment.

Should I get an account at a credit union/bank or just manage my money with an account?

Description : Should I get an account at a credit union/bank or just manage my money with an account?

Last Answer : answer:Banks/Credit Unions are safer. Credit unions have great programs that will earn you interest. Here's the problem: The money sitting in a jar under your bed (or wherever) is actually decreasing in ... funds in a savings account at a minimum, but an IRA or some other investment is even better.

If I made a deposit this morning and my account says the money is "pending," can I make purchases greater than the amount in my bank account?

Description : If I made a deposit this morning and my account says the money is "pending," can I make purchases greater than the amount in my bank account?

Last Answer : can I make purchases greater than the amount in my bank account? one would imagine not…

Is it difficult to transfer money from a Canada bank account to an American bank account?

Description : Is it difficult to transfer money from a Canada bank account to an American bank account?

Last Answer : No its very easy, you need Receiving bank's account number, routing number, IBAN number, SWIFT code, they bank name and bank address The person you are wiring should be able to call their bank and ... the most of the info is on the check except the SWIFT code, IBAN number and the bank address.

Is there a limit on how much money I can deposit in my bank account?

Description : Is there a limit on how much money I can deposit in my bank account?

Last Answer : answer:No you would have to give some of it to me. :D Googling resulted in a mention of a $100,000 cap of the FDIC would cover. So, I think @WestRiverrat has it right.

Can I Put Money In paypal Without an bank account/credit?

Description : Can I Put Money In paypal Without an bank account/credit?

Last Answer : no it has to be linked to credit card- I think a prepaid card works but when I opened a paypal acount it asks for your bank account info

Can I deposit a rebate prepaid debit card into my bank account or do I have to spend it at a store?

Description : Can I deposit a rebate prepaid debit card into my bank account or do I have to spend it at a store?

Last Answer : you could spend it on groceries… that way it wouldn’t be something you don’t need.

Which bank should I open an account with?

Description : Which bank should I open an account with?

Last Answer : Just don’t use Bank of America! We’ve had so many problems with them!

If i send money through my bank account in Bank of America can i have a receipt that i can print where i can prove that the other person got the money?

Description : If i send money through my bank account in Bank of America can i have a receipt that i can print where i can prove that the other person got the money?

Last Answer : Send money how? Like a wire transfer? The bank will provide you with a receipt of the transaction. If you somehow don’t find a way to print one online. Call them or go to a branch and they can provide it as well.

Banks in the US, active with the FDIC, only insure $100,000. So if a person has, for example, 10 million dollars and wants to deposit the money in a bank, does he have to look for 100 banks or is there another way to invest that is as low risk as a savings account?

Description : Banks in the US, active with the FDIC, only insure $100,000. So if a person has, for example, 10 million dollars and wants to deposit the money in a bank, does he have to look for 100 banks or is there another way to invest that is as low risk as a savings account?

Last Answer : A person with 10 million dollars probably has a diversified investment portfolio with a variety of risk levels and return levels. As a result, his insurance is that not everything will collapse at the ... 10% above inflation, banks are a very poor choice for someone with lots of money to invest.

What does a sizeable bank account mean? How much is a sizeable amount?

Description : What does a sizeable bank account mean? How much is a sizeable amount?

Last Answer : There's probably not a set definition, but what it makes me think of is whether: a) you have enough that you never have to work again, b) you have enough that you can make major purchases ... do/accomplish during your lifetime? Of course, money isn't the only tool that can make these things happen.

Do you know any banks that do not charge monthly fees for not meeting minimum balance requirements for a small business account? Or a recommendation of a good small business bank, period?

Description : Do you know any banks that do not charge monthly fees for not meeting minimum balance requirements for a small business account? Or a recommendation of a good small business bank, period?

Last Answer : Sovereign Bank had Free Business Checking a few years back… I’m not sure if they still do. Have you done a web search for “free business checking”?

If it's not in my PayPal account and not in my bank account...

Description : If it's not in my PayPal account and not in my bank account...

Last Answer : To transfer money to your bank account they say that it can take a few days. I think it's because they just want to hold on to your money longer! I went ahead and got the pay-pal debit card. I can ... actually give me a little bit of money back. It didn't cost anything so it was worth it to me.

Is there a benefit to making a principle only payment on a simple interest loan?

Description : Is there a benefit to making a principle only payment on a simple interest loan?

Last Answer : Paying extra principle will reduce your interest costs. Sometimes the reduction is in the next payment, but there is always a reduction at the end.

Could someone explain very simply what negative interest rates are?

Description : Could someone explain very simply what negative interest rates are?

Last Answer : answer:Normally, when you have a savings account, interest causes your balance to increase over time. Negative interest means your balance decreases. So, negative interest applied to normal people means that ... to borrow money. Of course, that would never be applied to normal people taking loans.

Compound interest question?

Description : Compound interest question?

Last Answer : Most payment schedule pay both interest and principal each month. I’ve never heard of compounding principal. I have a couple of amortization formulas in the office.

If you borrow the very first dollar into existence, but promise to pay it back with another dollars worth of interest, where do you get the second dollar? How do you pay it off?

Description : If you borrow the very first dollar into existence, but promise to pay it back with another dollars worth of interest, where do you get the second dollar? How do you pay it off?

Last Answer : By making more debt from another party. The entirety of today’s economy is based on creating more and more debt. Because of interest, you have to create more debt, there is no way around it, and this cumulative debt grows and grows, until the entire house of cards invariably collapses.

Why would corporations offer bonds that pay 5 to 6% interest?

Description : Why would corporations offer bonds that pay 5 to 6% interest?

Last Answer : some do because they need to borrow more than the banks are willing to loan.

Is anyone here knowledgeable about Variable Rate Demand Notes? (Floating Rate Demand Notes) - they seem to pay attractive interest, but are not regulated or insured.

Description : Is anyone here knowledgeable about Variable Rate Demand Notes? (Floating Rate Demand Notes) - they seem to pay attractive interest, but are not regulated or insured.

Last Answer : If you are comfortable with the company, it is probably a good investment. Depends on how much money you are talking about. Is it long term money or short term money. If long term, ... fixed annuities. (NOT VARIABLE ANNUITIES). Despite the similarity in name, they are very very different products.

Is it right for an auto financing company to charge interest on a monthly basis without adjusting interest charges for bi-monthly payments?

Description : Is it right for an auto financing company to charge interest on a monthly basis without adjusting interest charges for bi-monthly payments?

Last Answer : I see your “moral” argument but think that the legal answer is it depends on what the contract you signed says. I’m not a lawyer, and perhaps someone who is will chine in, but I think that if the contract sets those terms, then it’s legal.

Does anyone have any suggestions for good credit cards (good rewards program, low interest, etc.)?

Description : Does anyone have any suggestions for good credit cards (good rewards program, low interest, etc.)?

Last Answer : I LOVE my JetBlue American Express Card. Now, I take a vacation every year and my flight is always free.

Best interest rate for private student loans?

Description : Best interest rate for private student loans?

Last Answer : citibank mine seem to be really low what is your current rate?

I am unemployed. Do I pay federal tax on interest rate income i make from investing in treasury notes?

Description : I am unemployed. Do I pay federal tax on interest rate income i make from investing in treasury notes?

Last Answer : I would check the IRS website….but you probably do have to pay taxes on that income if it exceeds a certain amount.

With interest rates so low, what might be a good investment?

Description : With interest rates so low, what might be a good investment?

Last Answer : answer:Well that’s the million dollar questions now isn’t it :) My investing club is looking into domestic and international stocks that deal in: trees, water, pipline manufacturers, biotech and precious metals, palladium especially.

If we operate in a "free market," how come the "fed" sets interest rates and not the market?

Description : If we operate in a "free market," how come the "fed" sets interest rates and not the market?

Last Answer : Well, the answer is that we don’t operate in a free market economy, it is highly regulated. But you might want to read up on the Federal Reserve system, as the Fed doesn’t set ALL interest rates, just those that are tied to certain federal funds.

What does 6.8% interest actually mean?

Description : What does 6.8% interest actually mean?

Last Answer : answer:If you didn't pay a dime of the original $2000 for three years, then by the time you start paying it back, you'll actually owe $2,436 (2000 1.068 to the third power). The interest applies to ... to pay down the debt, but the private ones will want you to take as long as possible to do so.

Ruling on depositing money in Al-Baraka Islami Bank ? I manage a few accounts of a company. The company has accounts in several interest bearing banks. Note that account holders only open current accounts and do not charge interest. Isn't it better to keep all these lazy money in an Islamic bank lik

Description : Ruling on depositing money in Al-Baraka Islami Bank ? I manage a few accounts of a company. The company has accounts in several interest bearing banks. Note that account holders only open current accounts and ... income tax and duties or in other similar sectors ? Or can it be used in any sector ?

Last Answer : One: It is haraam to deposit money in an interest-bearing bank without the need to save money. For that, it should be limited to depositing money in (current bank's) current account. It is not permissible to ... It can be eaten. And if it can be kept in a better and cleaner bank then that is better.

i. Joint Stock Company opens Current Account. ii. Generally, no interest is paid by the bank on the Current Account.

Description : i. Joint Stock Company opens Current Account. ii. Generally, no interest is paid by the bank on the Current Account.

Last Answer : State whether the following statements are True or False: i. Joint Stock Company opens Current Account. ... . x. Banks grant long-term loans only.

If and 2000 is placed in a bank account that pays 3 compound interest per year how much will be in the account in 2 years?

Description : If and 2000 is placed in a bank account that pays 3 compound interest per year how much will be in the account in 2 years?

Last Answer : 2120.8

What has cidney savings account with National Bank. She earns 4 interest compounded yearly on 1250.00. What amount will she receive in interest in three years?

Description : What has cidney savings account with National Bank. She earns 4 interest compounded yearly on 1250.00. What amount will she receive in interest in three years?

Last Answer : What is the answer ?

If and 2000 is placed in a bank account that pays 3 compound interest per year how much will be in the account in 2 years?

Description : If and 2000 is placed in a bank account that pays 3 compound interest per year how much will be in the account in 2 years?

Last Answer : 2120.8

What are the interest rates for a savings account from Chase bank?

Description : What are the interest rates for a savings account from Chase bank?

Last Answer : Chase currently offers an interest rate of .5 on their savings accounts. These are not high rates.

Why do bank savings account interest rates change over the years?

Description : Why do bank savings account interest rates change over the years?

Last Answer : The interest rate at which they lend out money changes, which changes your interest rate. Banks are a buisness and if their interest rates are lower then your interest rates, they make no ... pay to the govenrment changes. Whnever the federal reserve rate changes,your interest rates can change.

Which bank in has the highest interest in checking and savings account?

Description : Which bank in has the highest interest in checking and savings account?

Last Answer : Karnataka bank in India has highest interest in savings account. For the amount kept between 7 to 45days you get 4.5% as interest

Mark the correct option a) After maturity , the senior citizen account will be extended further 3 year b) The account continued after maturity, the deposit shall earn interest at the rate applicable to the new account opened. c) In case the account not extended on maturity and closed at any time the saving bank interest applicable d) There is no maximum time limit for PMI e) All the above

Description : Mark the correct option a) After maturity , the senior citizen account will be extended further 3 year b) The account continued after maturity, the deposit shall earn interest at the rate applicable to the ... bank interest applicable d) There is no maximum time limit for PMI e) All the above

Last Answer : e) All the above

Mark the correct option a) In case death of the one depositor of joint account holder , in the MIS account the account will be treated as single from the date of death of the account holder b) The surviving depositor will have withdraw the excess amount over and above the maximum limit of investment by single depositor. c) If this amount is not withdrawn, the excess amount will carry the normal saving bank interest d) All the above

Description : Mark the correct option a) In case death of the one depositor of joint account holder , in the MIS account the account will be treated as single from the date of death of the account holder b ... amount is not withdrawn, the excess amount will carry the normal saving bank interest d) All the above

Last Answer : d) All the above

Although I'm no longer employed, I have a 401K account through a former employer. Is there a way for me to continue contributing to that 401K account?

Description : Although I'm no longer employed, I have a 401K account through a former employer. Is there a way for me to continue contributing to that 401K account?

Last Answer : I am not a financial wizard or anything, but I’m pretty sure you can not continue contributing to that account. Have you looked into rolling it over into an IRA and then you can add your contributions to that IRA.

Where can I get a loan without opening an account?

Description : Where can I get a loan without opening an account?

Last Answer : How do you figure on getting a loan without opening an account with the lender?

How do I accept foreign funds into my Paypal account, and then what?

Description : How do I accept foreign funds into my Paypal account, and then what?

Last Answer : paypal is really easy all the payer needs is your email address. Then you go into paypal and have the money deposited into your bank account. I am assuming you have a paypal account? If not, it’s easy to set up.

What is a mortgage account number?

Description : What is a mortgage account number?

Last Answer : answer:I guess you can write to pretty near anyone and tell them pretty much anything you want. But if you expect to stay in the house, then you'd better pay off on the mortgage. Mortgages ... or should have received) a notification of the change as a normal part of the mortgage holder's business.

If you had just enough money in your savings account to pay off your house, would you?

Description : If you had just enough money in your savings account to pay off your house, would you?

Last Answer : It would depend on the interest rate, @chyna, and other things like they type of loan, how much equity I had in the house, amount of mortgage payment, value of the home…

How is a debit card with a checking account different from this >PASS card?

Description : How is a debit card with a checking account different from this >PASS card?

Last Answer : It's like a cross between a checking account and a gift card. With a pre-paid card, your parents deposit money onto the card, and can reload more money as you spend it down. In that way it's ... costs $50, your card will be declined and you will have to find another way to pay for your purchase.

What happens if a post-dated check is accepted and processed to my account before the due date?

Description : What happens if a post-dated check is accepted and processed to my account before the due date?

Last Answer : I would have thought so. Give them a call and see how it goes.

How do I endorse a check made out to me so that someone else can cash it or deposit it to their account?

Description : How do I endorse a check made out to me so that someone else can cash it or deposit it to their account?

Last Answer : Third Party check: Second party signs and then puts “Pay to the Order of” name on back of check? Third party then endorses below and submits to bank. http://www.bankingquestions.com/checkingaccounts/q_3rdpartyckhtml.html

I'm having trouble recieving a direct deposit into my account, what should I do?

Description : I'm having trouble recieving a direct deposit into my account, what should I do?

Last Answer : I know that generally speaking the first one can take longer than usual as they are getting everything set up. Does your bank acknowledge a pending deposit at all? If not I would go over all of ... has all the correct information as well. How long has this deposit been in the process of happening?

How do I minimize the hit when trying to put euros into my US checking account?

Description : How do I minimize the hit when trying to put euros into my US checking account?

Last Answer : I’m a little confused.. is this ‘hit’ coming in the form of the exchange rate.. a wire transfer fee.. i’m not really sure what in particular you are referring to.

Can a teenager sign up for a PayPal account?

Description : Can a teenager sign up for a PayPal account?

Last Answer : You might not be able to, because PayPal would probably resist issuing one to someone too young to legally enter into a binding contract without parental or guardian support.