Halifax xmas regular saver bond

[malagabob]

Can anyone calculate the interest earned if I save a regular £200 a month, no withdrawals starting end of this month (Dec) with this bond. Its 5% and the term ends 29th Nov 2012 with a deposit in that month.

[LochNessMonster]

£2400 + 5 % interest of £120 = £ 2520

[gingejbee]

LNM has calculated simple interest on a lump sum of £2400 - not the situation at all.

[malagabob]

thanks LNM there is a clause, "Interest will be added to your bond on maturity and will be calculated on a daily basis so that interest on each required investment will be calculated over the period for which it is actually invested and not the entire period of your bond" Does this make any difference?

[gingejbee]

Gross interest should be approx. £65. And if tax is payable on that amount, you'll end up with about £52 more than you invested.

[gingejbee]

.....and, since interest is calculated daily, you will get a bit more than I have said- but not much!