Kaupthing Edge savings Account - 6.36 ???

skyjumper

for all the MSE who are savvy with figures, I have got a request.

could you pls work this out and tell me if there is anything missing.

Amount saved 2520.05 - 1st July to 31st July. Interest Rate 6.36% Gross
Total Interest 11.37
Witholding Tax 1.89
Interest Paid 9.47

Am I missing something. As per my calculations, I should have got more than this as Interest.

Sorry for my ignorance. Any help Appreciated

talana

Was the entire balance in there for the whole month?
So £2520.05 was the balance on 1st July and the balance on 31st July?

ffacoffipawb

skyjumper wrote: »

for all the MSE who are savvy with figures, I have got a request.

could you pls work this out and tell me if there is anything missing.

Amount saved 2520.05 - 1st July to 31st July. Interest Rate 6.36% Gross
Total Interest 11.37
Witholding Tax 1.89
Interest Paid 9.47

Am I missing something. As per my calculations, I should have got more than this as Interest.

Sorry for my ignorance. Any help Appreciated

The tax deduction looks wrong, being 20% of the net figure instead of 20% of the gross. The tax on £11.37 should be £2.27.

skyjumper

talana,

yes the enitre amount was left in the account for the entire length of time.
1st July to 31st July- untouched.

ffacoffipawb,

I understand the tax deductions were wrong, but not able to really understand how these figures were derived.

Valley_Bluenose

IIRC the rate on the Kaupthing account only went up to 6.36% a few days ago. So most of the interest would have been earned at the old rate (can't recall what it was I'm afraid).

talana

So the gross interest should be (give or take) 2520.05*6.36/(100*12) = £13.35
Is that right?

Ah, just seen the previous post. Yes, that might explain iit.

thumshie

http://www.kaupthingedge.co.uk/our-products/interest-rates/history.aspx
Rate was 6.31% Gross until Jul 29...