Calculate interest rate APR (compound and normal) on a daily basis

Let's assume there is an interest rate of 0.61%. So, the interest is 0.61% AER which is then divided by 365 and paid daily. The interest rate is for the year, not per day however interest is paid daily.

A calculation found online is shown below:

I am putting an amount of 20000 as an example. Based on the image above I should get the following:

``````[20000*(1+0.00001671232)^30]−20000
``````

which means the interest is nearly `10 pounds` for 30 days? And `122 pounds` for 365 days?

A calculator for a normal interest online for a year also gave me this:

In either case, the interest seems a bit unreal for a fcsc bank. Is there a chance that I will get taxed on any amount?

• In what way does "the interest seems a bit unreal for a fcsc bank"? Mar 19, 2022 at 14:21

If you put 20,000 into a bank and they pay 0.61% over a year then that will mean

20,000 * 0.0061 = 122 of interest

The compounding will raise that number slightly.

In either case, the interest seems a bit unreal for a fcsc bank. Is there a chance that I will get taxed on any amount?

0.61% seems good today, but a few decades ago you could get 10 times that much.

The question about is it taxable, depends on the jurisdiction and what other income you have.

• Lloyds and highstreet banks give around 0.01% lately. 0.62% was a shock for me. I wonder if I can find an even better one Mar 11, 2022 at 13:15
• @Datacrawler Depending on what kind of saving rules you are willing to play with (e.g. flexible, fixed-term, with X month of notice), there are quite a few options in the UK (or England, at least) that is paying better than 0.62% as of Mar 2022. Comparison websites for "UK saving accounts" (of which there are many) are your friend in this case. Mar 12, 2022 at 16:07
• Can confirm you can get upward of 2%+ on normal savings account without any fixed term. Nov 8, 2022 at 18:57

You may have to pay tax on interest from savings. It depends upon how much you earn and what income tax bracket you're in.