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how much interest after one year on ub savings account at 4 percent rate

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  • 28-05-2012 3:38pm
    #1
    thebourke
    Registered Users Posts: 1,312 ✭✭✭


    how is ulster bank calculating interest on there special interest deposit
    account?
    say for example i save 100 per month for 12 month at a rate of 4 percent
    how much interest would i get after a year before DIRT tax


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    #2
    Sir123
    Registered Users Posts: 311 ✭✭Sir123


    thebourke wrote: »
    how is ulster bank calculating interest on there special interest deposit
    account?
    say for example i save 100 per month for 12 month at a rate of 4 percent
    how much interest would i get after a year before DIRT tax


    €100 x 12 = €1200

    Interest rate= 4% so
    €1200 x 0.04 = €48 This is the before dirt figure.

    To get the dirt which is 30% now, you'd have to multiply €48 x 0.3 which is €14.4

    Therefore your net investment gain for the year would be €48- €14.4 which is €33.6

    Remember it's the figure after dirt which counts :)


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    #3
    amcalester
    Closed Accounts Posts: 4,121 ✭✭✭amcalester


    By my calculations you'll receive 21.84 in interest.

    interest will be calculated daily and added at the end of the year and not just based on the end of year balance.


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    #4
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    Sir123 wrote: »
    €100 x 12 = €1200

    Interest rate= 4% so
    €1200 x 0.04 = €48 This is the before dirt figure.

    To get the dirt which is 30% now, you'd have to multiply €48 x 0.3 which is €14.4

    Therefore your net investment gain for the year would be €48- €14.4 which is €33.6

    Remember it's the figure after dirt which counts :)

    I'm sorry, but I don't think you understand how interest works!
    OP, amcalester's figures are pretty accurate (but are pre-dirt, so you'll be talking about a figure just under €15 after dirt). It really all depends on how often the interest is applied - some accounts are quarterly (the best from a customer's point of view, biannually or annually (the worst from a customer point of view). However, as the figures are small, it would only be an tiny difference.


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