I'm looking at the Nedbank Green Savings Bond and was just wondering about the following.
It says that there is a choice on how interest will be paid out, either monthly, quarterly, half-yearly, annually or on expiry. The interest rate on a 60 months investment is as follows:
Interest Monthly : 7.39%
Interest Half-yearly: 7.50%
Interest on Expiry: 8.90%
How do the calculations for this work?
(I will go in and see someone at Nedbank to explain it to me but if anyone here has any idea?)
The 7.39% Monthly option - I assume that 7.39 is the annual interest rate paid out monthly?
So, for example, if I put in R1000 I would get R73.90 interest a year, but paid out monthly (R6.16 a month) into a separate account.
If I choose to be paid out on expiry, does that mean the interest is still calculated monthly but compounded?
What I like about this is that it's an investment in renewable energy, I'm just not sure how to calculate what the amount will be for the various options after the 60 months is over...