HELP:Calculating Interest

£34,000 x 6.31% / 365 x 31 x 0.8 = £145.77

Or if you've had a dynamic balance during the month, calculate each day as...

Balance x 6.31% / 365

Then add the 31 days up...then multiply by 0.8 for savings tax

YorkshireBoy wrote: »

£34,000 x 6.31% / 365 x 31 x 0.8 = £145.77

Or if you've had a dynamic balance during the month, calculate each day as...

Balance x 6.31% / 365

Then add the 31 days up...then multiply by 0.8 for savings tax

Thanks YorkshireBoy; I dont know what a dynamic balance is but this £34,000 has just been in there for one month only.

sloughflint wrote: »

dynamic.... changes from day to day if you add/remove money.

Oh thanks sloughflint. No, this amount has stayed the same for a month.

I suspect Kaupthing have their figures wrong perhaps...

sloughflint wrote: »

If the full £34k has been sitting there for a complete month then yes it looks like a mistake.

Thank you sloughflint - I will call them in them in the morning and report back ASAP!

loobiloo wrote: »

OK, Ive spoken with Kaupthing and though the money has been in the account for a full month (it went in on March 13) the interest is paid at the end of the month - so the £89 interest was based on the days from the 13th to the 31st March. :huh:

If the money went in on the 13th, it wasn't in the account for the full month.
The earlier posters were misled. They asked questions about whether the money was in the account for a "whole month" or a "complete month". You led them to believe (by your responses) that the money was in there on the 1st March. It was on that basis that they did their calculations. One assumes that the terminology being used was new to you, and you didn't realise what precisely was being asked. It would perhaps be useful for the respondents to frame similar questions (in future) in a different way, i.e. "What day did the money go into the account, and was this in the form of cash, cheque, or BACS transfer?"