So with the introduction of Saving pots, I realise that I don’t understand interest rates like I thought I did.
So Monzo pay 1% on savings pots.
Let’s say (for ease of maths), I put £10k into a savings pot.
For me that means that over the course of the year I am thinking that I should earn 1% of £10k (or £100) in interest.
That payment is made monthly, so I would expect to receive to receive 12 equal deposits of my £100 (or £8.34/month)
However, looking at what I received in my actual savings pot, I’m getting nowhere near that rate. Using the example above, I’d probably receive something closer to 60p-70p per month instead.
So what am I missing here? I’m assuming I’m just being silly/naive but would like to get up to speed on this.