Ulster Bank Regular Savings Account, PROBLEM!!!

PYRO#1

When a bank offers say 4% AER or 3.95% Gross and pays quarterly how much interest should i get. Im saving 1000euro a month with this rate. After DIRT at 25% How much should i be paid in interest??? I dont think im getting anything near the ~3% im working out!
Am i missing something???

amacca

PYRO#1 wrote: »

When a bank offers say 4% AER or 3.95% Gross and pays quarterly how much interest should i get. Im saving 1000euro a month with this rate. After DIRT at 25% How much should i be paid in interest??? I dont think im getting anything near the ~3% im working out!
Am i missing something???

Roughly speaking (I dont have the time to work out a nice neat formula for this but im sure somebody else will)

And because it is I assume a regular saver account I'm also going to assume you will leave it open for the usual 12 months

your first deposit of 1,000 should earn approx 1000/100 x4 (=4%) = €40.00 -25% dirt (or less if opened before dirt tax changed) = €30

because the second deposit will only be in for 11 months of the term you should get roughly 11 twelfths of this amount

eg 1000/100 x4 (=4%) x11/12 = €36.67 -25% dirt = €27.50

and so on and so forth with the next deposit of 1,000 earning 10/12 of the amount because its in for 10 of the 12 months, and the next earning 9/12 of the interest amount because its in for 9 months etc

Is this why the interest seems way too low?

were you just calculating 4% of 12,000, deducting DIRT and expecting to get around €360 in interest?

Very roughly because Im pressed for time here, if you don't miss any payments and go the full twelve months with this account and the interest (which is variable btw) stays the same you should expect to get around €220 odd euros in interest after dirt, this is just a quick mental calculation though so could be fairly off

sorry dont have more time.

Ogham

One year at 4% - depositing 1k a month would get you 222 euro before DIRT by my calculation. - so about 166 after DIRT.

Blackjack

or it could be very easy if you had a website to do it for you.

Savings Summary
Total Monthly Contributions:
12,000.00
Closing Balance After 12 Months:
12,177.57
Total Interest Earned (DIRT deducted):
177.57

PYRO#1

Thanks guys. After 3 months i had 3000 in the account and got 18 euro interest. Dosnt really add up np matter what way you calculate it?

Ogham

Blackjack wrote: »

Savings Summary
Total Monthly Contributions:
12,000.00
Closing Balance After 12 Months:
12,177.57
Total Interest Earned (DIRT deducted):
177.57

DIRT is 25% not 20% as used in this calculation


Pyro#1 That 18 Euro after 3 months is correct - what did you really expect?

The Rooster

PYRO#1 wrote: »

Thanks guys. After 3 months i had 3000 in the account and got 18 euro interest. Dosnt really add up np matter what way you calculate it?

Of course it adds up!

1000 at 1 month at 3% = €2.50 interest
2002.50 for 1 month at 3% = €5.00 interest
3007.50 for 1 month at 3% = €7.50 interest

(3% being the 4% interest rate less 25% DIRT)

Total interest after 3 months = €15. So €18 seems about right!

How much were you expecting??