Is it vest to receive interest on a savings account monthly or yearly
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212SoftwareBear postedit depends how it's calculated ... not how often it is credited to your account.
you'll have to check your individual t&cs ... but normally these days interest is calculated daily and credited monthly or yearly.
Posted on 17 February 2010 |
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804MikeGG1 posted
The important thing to look at is the AER. Normally, if there is a monthly option, the AER is either the same or slightly less than the yearly option. Invariably, the interest rate is lower for the monthly option, to allow for the monthly compounding.
If you want a monthly income paid out to somewhere else, go for the monthly option. Otherwise go for the yearly option.
Mike
Posted on 17 February 2010 | Love 1 love
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134liesarenocomfort posted
I guess it's a personal thing, but I prefer monthly interest because you can monitor it. If it's a variable interest account the banks have a sneaky habit of luring you in with a tempting rate then promptly dropping it through the floor.
If you're paid monthly you can immediately see if there are rate drops (and switch if need be). If it's paid yearly you only realise you've been had when it's too late.
Posted on 17 February 2010 | Love 2 loves
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