I'm being really dumb at the moment and need some help with working out my interest on my savings. I recently opened a Lloyds monthly saver at 4% interest - I worked it out and thought I would be getting about £700 after a year (yes now I realise how silly that sounds!) I've used some online calculators afterwards and they say I'll be getting about £50.
I'm paying in £200 a month at 4% so I worked that out at (4% of £200 being £8) it says interest is calculated monthly but won't be paid until after 12 months
month one - £200 = £8
month two £400 = £16
month three £600 = 24
and so on, until month 12 £2400 = £96
So you add on all the interest and it's £3125. But it isn't. It's about £2450. Which I really don't understand. I now know I'm working it out wrong (disappointed) but can't work out how they do the interest.
Any help would be appreciated 
