Find solution
Which Bank has the highest interest rate in the UK?

How to calculate 23 years worth of interest on £16? UK ONLY?

  • How to calculate 23 years worth of interest on £16? UK ONLY? I am beyond crap at maths basically. I had an old back account from when I was a child and I recently came across my passbook. The bank have agreed to pay me the £16 that was left in the account plus interest to date. This £16 dates back to 1986, so thats 23 years. How do I calculate this? I presume they will pay the base interest rate? Thanks

  • Answer:

    That will take forever to work out with anything other than a spreadsheet. On an yearly basis it is relatively straightforward - sum + % interest - e.g. 16 X 1.05 = 16.80 year 1 x 1.05 = 17.64 year 2, 18.52 yr 3, 19.45 yr 4, 20.42 yr 5 and so on. Just x 1.05 on your calculator for each year beyond that to work out the rest, that will give you the compounded amount. You need someone to create a spreadsheet for you if you want to work it out yourself with the rate of interest for each month the money was in your account less the applicable % of tax payable in that month. Finding out what the rate of interest was each month will be the most time consuming part, only the bank is likely to be able to tell you what that is. (It won't be the base rate - savings rate are always lower than that).

agent492... at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

You don't mention which bank your account is with so I am providing you with a link to the Bank of England's historical rates, from January 1975 to date, in order that you can get a rough idea of what to expect. http://www.bankofengland.co.uk/mfsd/iadb/Repo.asp?Travel=NIxIRx For example, if you assume say 4.5% average interest per annum, that is roughly £0.75 x 23 years = £17. It doesn't work quite like that as the interest will be compounded annually but it gives a rough idea. Don't forget that the bank will deduct tax at the applicable annual rates. Alternatively, if you are into Excel, why not set up a spreadsheet, that will be more precise.

Tax Chap

Not much. If the interest rate was 5% (optimistic), the interest earned would be £33. It won't work out to be millions, I'm afraid!

as interest rates, go up and down continually, only the bank will have this information to hand Remember the interest rate at the moment is at an all -time low

Jan409

You just cannot work this out without knowing all the interest rates your bank had in use over the 23 years and to be honest with the sums involved it would not be worth the effort to try.

Fairdo4all

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.