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?