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#1
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#1
What sort of accounts offer compound interest? And what is the best rate you can expect?

I can't find this information.

Sorry if this sounds stupid.
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Tednol
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#2
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Any bank account you care to mention offers compound interest. If interest rates are 10% (they aren't and will probably not be that high for a LONG time, if ever) and you had £100 in your bank account paying 10% interest per year then after the first year you would have £110 in your account (£100 x 1.10). You'd have earnt £10 interest.

In the second year, the £10 interest would be used to calculate the interest you earn in that year. So you would earn 10% of £110. After that year you would have £121 in your account. (£110 x 1.10). You'd have earnt £11 interest.

After 13 years say, you would have £100 x 1.1^13, £345ish.

As regards interest rates, at the moment anything more than 3% is excellent. You can get a no-notice (eg you can take out money as and when you want, you don't have to give notice unlike say national savings) savings account with Smile (Co-Operative Bank) at www.smile.co.uk that pays 2.5%. Pretty good in current conditions.

Any questions I'll try and help.

Ed
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Mark Gillan
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#3
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I use the Nationwide building society's 'e-savings' Internet account, which is very good. At the moment, it pays 3.75% gross interest, so in line with the repo rate.
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