From: David Floyd 
Newsgroups: uk.finance
Subject: Re: HSBC's 8% Savings account
Date: Tue, 17 May 2005 12:24:09 +0100

In message of Tue, 17 May 2005, Jo Reed writes
>
>"Marcus Fox"  wrote in
>message news:ljcie.9807$sE4.2518@newsfe3-gui.ntli.net...
>>
>> "Jo Reed"  wrote in message
>> news:cnbie.9802$sE4.4107@newsfe3-gui.ntli.net...
>>> no need, the APR would be 8%
>>
>> Not really. I'm looking for the equivalent rate. For example, if I was
>> able
>> to pay in £3,000 at the start of the year, at an AER of 8%, this would
>> give
>> me £240 in interest at the end. But as I can only pay in £250 per month
>> for
>> 12 months, I'm earning 1/12th of 8% on £250, or about £1.68 for the first
>> month, approximately double this for the second month, triple for the
>> third
>> month and so on. But nowhere near £240, so not an actual equivalent rate.
>> I'm looking for an Excel formula (including compound interest) so I can
>> plot
>> this by month, and thus compare it with other savings accounts, and work
>> out
>> the true rate, so I can compare it to investing a lump sum with with
>> another
>> provider.
>>
>> Marcus
>>
>>
>
>right, sorry I misunderstood.  you will of course have to calculate the
>interest on the 2750 that you can earn about 5% on, then 2500, then 2250.
>Have you considered getting an ISA, the rates aren't that differenet (maybe
>you've already got an ISA?).  To do it in excel you just need the monthly
>interest rate, use the formular =(1.08)^(1/12) to give you the monthly rate.
>
>I've just worked it out....
>
>      £250.00 £251.61
>      £501.61 £504.84
>      £754.84 £759.69
>      £1,009.69 £1,016.19
>      £1,266.19 £1,274.34
>      £1,524.34 £1,534.14
>      £1,784.14 £1,795.62
>      £2,045.62 £2,058.78
>      £2,308.78 £2,323.64
>      £2,573.64 £2,590.20
>      £2,840.20 £2,858.47
>      £3,108.47 £3,128.47
>
>
>but don't forget what you get on the other money....which you can get 5.5%
>on
>
>      £2,750.00 £2,761.20
>      £2,511.20 £2,521.43
>      £2,271.43 £2,280.69
>      £2,030.69 £2,038.96
>      £1,788.96 £1,796.25
>      £1,546.25 £1,552.55
>      £1,302.55 £1,307.86
>      £1,057.86 £1,062.17
>      £812.17 £815.48
>      £565.48 £567.78
>      £317.78 £319.07
>      £69.07 £69.36
>
>
>Which gives a total interest take of.... £197.83.   But Gordon Brown will
>want 22%, which leaves you with £154.31.
>

No he wont. He'll take 20% (or 40% if he is a HR taxpayer)