Some accounts have unique offerings whereby the interest is paid out monthly as opposed to the typical yearly payout. This gives the advantage of being able to access your interest with greater frequency.
London (PRWEB) February 13, 2010
As savers start planning for the new financial year, Derek Keogh, Head of Personal Savings at Anglo Irish Bank, offers some up-to-date advice on typical time frames and pay out dates banks use with regard to interest.
Keogh highlights some of the basic operating methods used at financial institutions:
- "On standard bank accounts, interest is very often paid out on the March 31st each year. However, every institution has control over this. For example, a bank may choose to pay out interest on October 1st of each year."
- "Unless requested otherwise, the interest will most likely get paid into the account where it has been earned and on the date annual interest is paid out at that particular bank. Once this interest is paid into the account the customer will then earn interest on this "interest" in the form of compounded interest."
- "Some savings products are unique in when they pay out interest; such as a bond. For example, a 1 year fixed rate bond will have its interest paid out a year after it's been opened. So if you opened it on November 5th 2008 it would mature and interest would be paid on November 5th 2009."
- "Some accounts have unique offerings whereby the interest is paid out monthly as opposed to the typical yearly payout. This gives the advantage of being able to access your interest with greater frequency."
- "Finally, it's worth noting that interest rates on some savings accounts are variable so check your savings account provider's website from time to time to keep up-to-date with the latest rates."
The material contained in this article is for general information purposes only and does not constitute investment advice or an offer to buy or sell or a solicitation of any investment products or other financial product or service. You should not act or refrain from acting on the basis of any material contained in this article without seeking appropriate professional advice. All information is provided "as is" and without warranties express or implied and Anglo Irish Bank Corporation Limited accepts no liability whatsoever for any inaccuracies, errors, omissions, opinions or misleading information or for any action taken or not taken in reliance on the information in this message. Any expressions of opinion are current opinions as at the date of publication and are subject to change without notice.
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Issued by Anglo Irish Bank Corporation Limited, 10 Old Jewry, London, EC2R 8DN