Abbey in-credit interest correct?

Dagobert

Abbey is suffering from so many system errors, such as Abbey instant overdraft interest, I thought I check the in-credit interest for June.

During the first 12 months, my current account has an in-credit rate of 8% AER (7.72% gross) on the first £2500. According to the T&Cs 2.3.3, electronic payments (which is what all my payments are) accrue interest from the [calendar] day after receipt. I presume interest is paid up to and including the day of withdrawal. I also presume that interest relates the the previous calendar month (1st to 31st).

On that basis, I calculated the interest for June 2008 and find myself 25p short.

1. Can anyone confirm whether my assumption regarding interest on day of withdrawal is correct?
2. Has anyone else checked their interest?

Rafter

Dagobert,

Have you decompounded the interest rate and got from Abbey what they actually apply and is the applied daily or monthly?

I think it highly unlikely they would make such a basic mistake, but not impossible.

R.

Dagobert

Rafter wrote: »

Have you decompounded the interest rate and got from Abbey what they actually apply and is the applied daily or monthly?

I have applied the gross rate of 7.72% on the beginning of day balance for every day in June.

Rafter wrote: »

I think it highly unlikely they would make such a basic mistake, but not impossible.

I have had several accounts with Abbey and have seen a lot of incompetence and system errors ranging from not paying the in-credit interest at all to charging overdraft interest not due. If the overdraft interest calculation can contain errors, the in-credit calculation may be wrong too.

Before I make a fool of myself, I would just like to make sure that my calculations are correct.