Hi, please can someone explain how the interest works at the bank. Appreciate it may come across a bit dumb but I'm having a hard time working it out (and I have a maths brain!)

Whenever I deposit money and collect interest - the interest gained is always less than the percentage fine to withdraw the money meaning I always lose money including when I leave it awhile before withdrawing. Obviously I'm not doing it right.

Can someone give me some figures as examples so I can see where I'm going wrong? 

Thanks!

Bump!

Honestly, I have never understood the interest in the bank after 16 years and have never utilized it. So, following this xD

Yeah, I don't understand the math behind it. If you leave it in you've built up enough that it offsets it, I guess is what's supposed to happen? I just throw in what I get from the trade-in each year and try not to touch it unless I need it.

And do you think it makes money instead of a loss? I've tried leaving small amounts in there to test the theory before making a larger deposit but always seem out of pocket

hoping someone comes along soon with figures, i will probably understand more with examples 

I might test this honestly on some spares! I'll leave some money in and then withdraw all of it then bank it on sunday and see how it works! I'll check back in on this actually because personally i've never known how it works xD

IF my backwards math is correct:

You should gain .04% of whatever you have in there
It's most beneficial if you are able to put a substantial amount of money into savings

So, multiply whatever you have in savings by .04% and you should get the number of what it should make you....

for every $1,000 you should have a gain of $0.40 per week (1000 x .04%)
for every $100,000 you should gain $40 per week (100,000 x .04% and so on...)
for every $1,000,000 you should gain $400 per week
for every $100,000,000 you should gain $40,000 per week
for every $1,000,000,000 you should gain $400,000 per week

when it comes to thinking of a LOSS, you'll want to have collected x amount over time to cover the .01% you could potentially "lose" (because a withdrawal takes .05%, which is .01% higher than what you accrue weekly)

LOSS figures:

If you withdraw your $1,000 and you have only had your money in there a week and pull your $1,000: gain= 0.40, withdrawal fee on $1000 @ .05% is $0.50, so you would lose $0.10.  You can apply the math this way...

It's end of the day for me and I've been staring at and playing with numbers for 8.5 hours straight now, so it's possible that I got something wrong. Brain is tired :')

Thank you for replying. I kinda see it but it makes my brain hurt. Think I'll try do some working out tomorrow based on those calculations. I wonder how long you have to save for in order to not have a loss. Looking at the interest amounts listed like that, I'm not sure it's worth the faff. 

please report back whim if you do do it! 

I have all my money in the bank and collect interest every week. But I'm going to keep an eye on this thread to see if its really worth keeping it in there anymore or not.