Lloyds Classic Plus 6% - is your interest correct this month?

ps2659

Has anyone had the interest corrected yet on the classic plus ?

Paul_Herring

ps2659 wrote: »

Has anyone had the interest corrected yet on the classic plus ?

I haven't. they couldn't make an ex-gratia payment so my missing money has been 'added' to my interest which I'll get for this month (at the start of next month.)

Needless to say I'll be paying attention to the figure when it appears, since the person I spoke to said I had £x accrued so far this month (when I spoke to them) and the number I'd already calculated was in excess of £x.

~Chameleon~

I had to call them about something else yesterday and mentioned that acording to my calculations the interest adjustment payment was also wrong but got fobbed off saying that perhaps I hadn't met the criteria to receive the 6% interest rate

How do I calculate what interest rate I actually did receive using that spreadsheet calculation? I'm not going to let this drop, despite feeling petty at quibbling over £1 or so, it's the principal that matters plus I want to ensure that all future interest payments are correct

fischer79

Hi Chameleon

Criteria is to pay in £1,000 in the calender month.

if you meet this then:

To calculate interest (roughly) is (5.84/365) * your closing balance on each day and then add them all up for the month.

Paul_Herring

fischer79 wrote: »

Hi Chameleon

Criteria is to pay in £1,000 in the calender month.

.. and to access via internet banking 'regularly' (I can't remember how often this is, but it's about once a month I think.)

Paul_Herring

~Chameleon~ wrote: »

How do I calculate what interest rate I actually did receive using that spreadsheet calculation? I'm not going to let this drop, despite feeling petty at quibbling over £1 or so, it's the principal that matters plus I want to ensure that all future interest payments are correct

You work backwards using the amount you received(R), and amount you expected(E)

5.84%(gross)*(R)/(E)

So if you were expecting (say) £6.42 (net) but received £1.99(net) it was
5.84%*1.99/6.42 = 1.81% gross or
6.00%*1.99/6.42 = 1.86% AER.

Will work if both interest figures are gross instead of net.

~Chameleon~

fischer79 wrote: »

Hi Chameleon

Criteria is to pay in £1,000 in the calender month.

if you meet this then:

To calculate interest (roughly) is (5.84/365) * your closing balance on each day and then add them all up for the month.

Thanks, I know how to work out the interest I'm supposed to be getting, but I want to try and find out what rate they have actually applied to my account this month as it's certainly not 6%.

Paul_Herring wrote: »

.. and to access via internet banking 'regularly' (I can't remember how often this is, but it's about once a month I think.)

Yup, both criteria definitely matched, assuming of course they haven't added anything extra since switching us to 6%. I knew he was fobbing me off on the phone as my basic income rarely changes from one month to the next and I log on most days to check accounts, but couldn't be bothered arguing with him at the time as he was adamant all the calculations were now correct :rolleyes:

Paul_Herring

sloughflint wrote: »

Paul, I thought that the IB criterion was dropped a long time ago but have no references to back up this idea of mine.

Ah - don't recall seeing anything about that. This seems to back it up though:

http://www.lloydstsb.com/media/lloydstsb2004/pdfs/classic_welcome_pack.pdf - page 15

Classic Plus rates are variable and are paid monthly. To enjoy a really competitive rate, all you need to do is agree to and pay in at least £1,000 a month.

And http://www.lloydstsb.com/media/lloydstsb2004/pdfs/plus_ts_and_cs_2Nov.pdf

How you qualify for the special interest rates we pay on your ‘PLUS’ account

The interest we pay you on your ‘PLUS’ account balance depends on all these factors:

• how much is in your account
• whether you pay in at least what you agreed.

We pay ‘PLUS’ interest only on the first £2,500 in your ‘PLUS’ account. We pay our standard rate (which is lower than our special ‘PLUS’ rates) on anything over £2,500 in your account.

You must agree to pay in a minimum of £1,000 or more a month in to your ‘PLUS’ account.

If you do not pay in at least the amount you have agreed, we will pay you only at our standard rate (which is lower than our special ‘PLUS’ rates).

~Chameleon~

Paul_Herring wrote: »

You work backwards using the amount you received(R), and amount you expected(E)

5.84%(gross)*(R)/(E)

So if you were expecting (say) £6.42 (net) but received £1.99(net) it was
5.84%*1.99/6.42 = 1.81% gross or
6.00%*1.99/6.42 = 1.86% AER.

Will work if both interest figures are gross instead of net.

That's great thanks!

Ok, so the first interest payment I received was actually 0.82% gross (is this the same as everyone else's initial rate?) and the interest adjustment received was 2.26% gross so obviously they have calculated it wrong! :rolleyes:

fischer79

Any chance you are using the high interest on balances above £2.5k? This would make the payment look less than it should be.

Anything above £2.5kwill be on 0.1%.

If not then looks like a definite error.