apr

[Colugo]

I was just wondering how you can work out how much interest you receive a month in a current account given the APR?

[Ethel]

Thank heavens' for computers.

It is calculated daily because your balance is constantly changing in a current account - money going in and out all the time.

So if the interest rate is 5% and you have �1000 in your account, that would be 13.7 pence interest that day : �50 divided by 365.

That is a very simplistic explanation but is the way it works.

[Reverandfunk]

The interest you get paid on a current account is so low it isn't worth working out lol.

[Ethel]

I get around �300 a year on my current account - so it is worth while.

[Reverandfunk]

Blo8dy hell Ethel how much have u got in it? I thought most paid about 0.50% if you're lucky lol

[Ethel]

You can get up to 10% in current accounts. Mine is 6.5% at the moment - Alliance and Leceister.