Confused about interest earned....

Essenchill

Originally posted in a thread called 'Kaupthing Edge' but no one seems to be reading so, so hoped someone might be able to help if I create my own thread about my query...

I put some money into Kaupthing Edge in mid March and recieved a little bit of interest at the end of March.

In April I added no more money and the interest paid at the end of the month was higher as it was a full months interest (1st April-30th April).

In May I again added no more money and the interest paid was again higher as the month was a day longer and also the interest added in April increased the account total by a very small amount.

Now, at the end of June I have recieved less interest than I did in April.

The month is the same length as April (1st-30th June) and I have not taken any money out of the account. Maybe I am missing something obvious but expected the interest in June to be a tiny bit higher than that in May due to the account again growing slightly with the interest paid at the end of May. Or even the same as May taking into account May had an 'extra' day and the interest paid increased the account total and so these factors could have cancelled each other out. But I didn't think it would be less than the April amount.

The bank has put a statement on their website saying they have not reduced their interest rates so it's not that either.... What am I missing....?

UproarUK

I havent got a clue either.
Unless there is something obvious that I am also missing, I'd sugeest you try contacting KE directly. There is a secure messaging facilty in their online banking.

Essenchill

Yes, they do and I messaged them initially but they replied saying that as it was a query specific to my account they could not answer via email or secure messaging and invited me to give them a ring.

At this point I wondered if anyone on here could point out my stupidity before I rang and hoped someone would be able to explain in simple terms to me rather than the bank blind me with terminology and leave me more confused.

Thanks for your response though, UproarUK - appreciated in the deafening silence which I'm taking to mean that no one of the other readers of the thread know either. But it's nice to know it's maybe not my own stupidity and missing something obvious.... I will give them a ring tomorrow!

Milarky

Without giving us the interest amounts in pounds and pence can you post the ratios involved?

eg

April (30 days) 1.000
May (31 days) 1.0345?
June (30 days) 0.998?

This might trigger some thought on the possible causes

Also are the interests the same each month? (and please state the rates if known and whether you received interest gross or net)

From that, we should be able to check if April and May are in the expected ratios. If not we can check if May and June are in the expected ratios. In other words, the month with the 'problem' might be April - since this follows a non-complete month - rather than June as you have assumed....

Essenchill

Can't do it in ratios (or don't think I can so aren't going to attempt it!) but basically:
April: £5.49
May: £5.88
June: £4.64

Hope this helps in some way or form?

KAB_3

Do you get your interest gross or net of tax?

It looks to me as if June's £4.64 could be net whilst the 2 earlier months were gross.

£4.64 net would have been £5.80 gross which is more comparable with the earlier £5.49 and £5.88.

kingmonkey

?something to do with weekends

Essenchill

Thanks for your responses, they should all be net of tax and I did wonder if weekends would have an effect...!

Stompa

Essenchill wrote: »

I did wonder if weekends would have an effect...!

No they won't. FWIW I have a KE account to which I've not added any additional funds for many months. My June interest was greater than my April interest (and May interest was greater than both). So I would have expected the same in your case.

Essenchill

Thanks, I'm glad I'm not just plain stupid then and that my instincts were right. Thanks so much for all your responses.

Apreciar

Stompa wrote: »

No they won't. FWIW I have a KE account to which I've not added any additional funds for many months. My June interest was greater than my April interest (and May interest was greater than both). So I would have expected the same in your case.

Thirty days have September April June and November, all the rest have thirty one except......to be expected June would have had previous months compounded.