Settle an Argument.... [Money]

[damien©]

Someone I know just got £150,000 if he paid that into a Normal Bank Account in One month how much interest would he make...

Tell me ow you worked it how.

Cheers if you can help, as I don't know much about Interest and Banking.

Thank You

[Raisedbyflames]

not much in a standard bankacount intrest is percentage of 1% so you want to get a savings acount

[damien©]

So what about a savings account...?

Also is the interest gained monthly?

[Raisedbyflames]

not an expert but savings acounts have higher intress but have limits on the amount you can take out

[Blaze Lord]

In one month? Depends if the bank compounds interest monthly. I don't think my bank does monthly. I think just quarterly.

[damien©]

In one month? Depends if the bank compounds interest monthly. I don't think my bank does monthly. I think just quarterly.

Say then how much we he get after a year if that makes it easier...

Only looking for a rough guess!

[Blaze Lord]

I have no idea what interests rates are like in the UK.

But as a rule of thumb, the best interest rates usually do is keep up with inflation. It's not a way to make money.

[Tobes]

with £3000 in a savings acount I get £7 a month.

Do the maths

[Blaze Lord]

So, like 350 a month?

[mjmaskrey]

Blaze's figure will be in the ball park if you get a Savings account with the likes of Egg (4.75% gross per annum) who will pay it monthly, and if you have an Egg Credit Card or Egg Money card then they can pay the Interest earned directly in to those accounts so that you can spend it easily.

Interest rates get massively complicated so just take any figures very loosely. I did see a person with around £600,000 in an Egg Savings Account who was earning approx. £18,000 a year interest but that was a good few years back.

An ISA will net you a bit more interest but they're very restrictive with regards to getting your cash out.

:)

[RiLu@]

So, like 350 a month?


...and then you have to add the 350 every month to the total

like you get 100 in and it grows 5%:

month 1 - 105 + 5%
month 2 - 110,25 + 5%
month 3 - 115,76 and so on

just find the banks home page and search for a interest calculator many banks have it.

£150.000 with 4,75% a month/quarter first time it grows £7125.

[mjmaskrey]

Yeah but with him wanting to know what interest monthly is...I'm guessing he wants to bank teh money and then see if he can live off the interest....so his investment will always stay the same unless he piles any spare cash each month back in.

:)

[RiLu@]

yeh but £7125 it's a lot of money, if you careful you don't waste so much money in a month.

[Blaze Lord]

But it's still nothing compared to the money you could be making by investing that money in almost everything else, except pumpkin futures in November.

[damien©]

Well I might aswell tell you the story. Someone I know got 1.5million euro's but he's being ed around and he's been waiting 2 months for the full payment.

I was basically arguing that he's losing out a load of money, enough that someone could live off easily. However I was told I wasn't doing my figures properly, although it seems you calculated roughly the same as me thats adopting the price I mean.

Thanks for your help.