How does the interest work on Wombat's GB Bank Base Rate Tracker, and how often is it paid?

The interest on your balance is calculated each day, and paid daily. The interest you receive on your savings in Wombat’s GB Bank Base Rate Tracker is determined by the Bank of England base rate, minus up to 0.5%, so if the base rate increases, your interest rate increases too. If it decreases, your interest rate will decrease too. 

For example, if the Bank of England base rate was 5.25%, and your interest rate is the base rate less 0.5%, your interest rate with Wombat would be 4.75%. When the base rate changes, with our Base Rate Tracker, your interest automatically updates the very next day, meaning you will always get a competitive rate, without the need for endless account switching. It’s usually up to individual savings providers to decide whether and when to pass on this rate to savers, meaning you may not see any benefit at all with some providers. 

With a 4.91% AER (assuming you didn’t deposit, withdraw, or the interest rate didn’t change) if you held £1,000 in your account over 12 months, you’d earn £49.10 in interest, meaning a total balance of £1,049.10 at the end of the year.