Where the heck is my interest???? (Halifax)

BusinessStudent

Hello

I currently have a account with Halifax (Student Account and im supposed to get 1.51% interest)

However i got just £1.31 interest on £1,563.28 !!

Im seriously confussed! - Surely 1.51% of £1,563.28 is £23.44??

I complained to Halifax via phone and they said someone would get back to me. Someone did get back to me in writing saying that £1.31 is the correct amount of interest and that i was geting 1.51% interest on my account??

I remember having some forms come through from the Halifax ages ago requesting i fill them (something to do with interest?) and i never did.

Help!

toaster2

Your 1.51 is the interest over the year. multiply your monthly interest by 12 and it should give you your 1.51 or there abouts.

You should read some articles on student account see if you have the best account:)

newfoundglory

£23.60 is what you would earn in interest on £1,563.28 if you left it in the account for 1 year, and allowed the interest to compound I suspect.

If you did not register for gross interest, then 20% is deducted from any interest you earn too.

If Halifax are paying you interest monthly and deducting basic rate tax from the interest, for less than 30 days in the account, £1.31 sounds just about right to me!

BusinessStudent

May I thank Toaster2 and newfoundglory for your replies.

Thanks for your help.

My understanding was that I would get 1.51% interest was per month, i.e I expected to have £23.44 interest every month (doh)

I was wrong lol

Woby_Tide

Maybe accounts is being taught next semester?

YorkshireBoy

Woby_Tide wrote:

Maybe accounts is being taught next semester?

At only 17 years of age (see other posts made), I think we can forgive the OP for this misunderstanding.

As an aside, the OP might need to be changing accounts soon as, looking at the accounts paying 1.51% on the Halifax website, this account is only available for under 18's.