Hello,
Thought I’d ask here as a I feel a bit silly! Please could someone explain how interest works in the easy access saver?
When I opened the account it offered about 1.15% interest, which was reduced to 0.56% due to the COVID recession. Fine. But I want to understand how the interest is calculated. I currently have £5000 saved and save about £500+ a month so it’s been quite a chunk of money for a while.
However, every month I only get about £2 in interest. 0.56% of £5000 is £28 so why do I earn so little? Even when I had the 1.15% interest I was still only earning about that much.
I’m sure this is just me being an idiot and not understanding interest maths so please could someone break it down for me?
Thanks!
Anna