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Thread ID: 84605 2007-11-11 23:11:00 Calculate average interest in bank savings account? Rutherford (10399) PC World Chat
Post ID Timestamp Content User
610713 2007-11-11 23:11:00 Lets say I deposited $250 in a long term savings account, with the interest compounded (added to the principal) each year, for 20 years (starting in 1987). What would it be worth now, if the bank is here in New Zealand?

Currently long term deposits get about 8%. Where can I find what interest banks offered over the last 20 years? I found this site to calculate compound interest:
math.about.com

In the 1980's I think interest was higher than what it is now, up to 12% or more, but maybe my memory is wrong. My guess is that on average, the annual interest that banks and other savings institutions have offered would be around 7% - 8%.

Any ideas?
Rutherford (10399)
610714 2007-11-12 17:07:00 Looks like this Q has stumped PF1.

I went here: www.rbnz.govt.nz
but interest rates only went back to 2005.

There must be someplace that lists lending rates, mortgage rates, savings interest, bonds, or whatever, over the last few decades.
Morpheus1 (186)
610715 2007-11-12 19:50:00 There is, I saw a link on a Mary Holm column in the NZ Herald once. I'll see if I can find it or you can just email her and ask. beeswax34 (63)
610716 2007-11-12 23:15:00 Frequently the interest paid is proportional to the amount deposited - somehow I doubt whether you would receive top rates on $250.00.

A sore point about the calculation of tax on the interest on savings accounts is that the cost of the account fees is not taken into account in calculating the tax payable. As the Account fees are part and parcel of the contract between the Bank and it's customer, it could be said that they are an earnings related cost and should be tax deductible. hence with accounts with balances below $1000, frequently the Account Fees exceed the net interest after tax.
KenESmith (6287)
610717 2007-11-13 08:38:00 www.sorted.org.nz has something from what I recall V1sta (6614)
610718 2007-11-13 19:12:00 The Reserve Bank has a table showing bank deposit rates going back to 1965. www.rbnz.govt.nz Table B3 Historical Series. Mercury (1316)
610719 2007-11-13 19:30:00 One fun thing on the Reserve Bank site is their CPI Inflation calculator (www.rbnz.govt.nz).

That $250 in 1987 is equivalent to $441.74 in today's money.
Mercury (1316)
610720 2007-11-13 23:24:00 Probably the account would have been closed when it reached $0.00, because the bank has been charging a "fee" every month. Graham L (2)
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