I know how it works, darren. I have been saving all of my life.
I would be disappointed if the ending balance is £6k having paid in £500pm because that alone is £6k.
Who do you have in mind?
@Bob McC clearly knows what the final account balance would be if paying in £500pm, as do I.
The post from
@Ponty lacked detail and imo Bob was looking to make that clear for those who don’t understand APR, APY and AER. Let’s face it, financial institutions deliberately try to use headline numbers that will suck people in. I’m pretty sure from the type of account Ponty referred to most people just want to see a number in £££ they will have at the
end of the offer term for a given monthly amount paid in.
For example, this is why the
Yorkshire BS advertises a 5% AER rate but gives an illustration showing what people really do want to see and see it at a glance, which in this case is interest added of £161.92 over the year for £500pm paid in. This imo is essentially what Bob said and I suspect people knew what he was saying. A few just have to be smug.
Source :
Yorkshire BS
