Kaupthing edge question.

YorkshireBoy

glitterygert wrote: »

Sorry to bother, but I am really stupid with figures

We've been here before haven't we.

http://forums.moneysavingexpert.com/showthread.html?t=1080413

I assume you mean 31.07.08 for the first interest payment?

The reason you got slightly more interest for August is because of compounding, ie you were earning interest on a larger balance (because July's interest was added to the account rather than being paid away).

You'll be earning interest for September at...

£10,132.49 x 6.36% / 365 x 30 x 0.8 = £42.37 (it's less than the last two months because there are only 30 days in September).

Clear?

glitterygert

thanks, I should keep the postings I make in my favourites, I forgot about posting that, oops, I'm having a lot of senior moments just lately. Thank you very much for your patience, I'm not sure where the £10,176.14 comes from as my balance with the interest added is £10,132.49. for August

YorkshireBoy

glitterygert wrote: »

I'm not sure where the £10,176.14 comes from as my balance with the interest added is £10,132.49. for August

My apologies. I've edited my post.

Vectra

Logged in as usual today to move the monthly interest imto my linked acct as I use this as part of my income.
No problems as usual,very fast ,I must be doing things right.

glitterygert

Thanks again, so the asnwer to my question is, I got 48p extra interest for leaving my interest in. If you see what I mean. I thought if you left your interest in it said that the interest would compound and be 6.50%

YorkshireBoy

glitterygert wrote: »

Thanks again, so the asnwer to my question is, I got 48p extra interest for leaving my interest in. If you see what I mean. I thought if you left your interest in it said that the interest would compound and be 6.50%

You'll earn 6.55% AER if you leave all the interest payments in the account for a year. That's because you'll earn interest on interest, due to monthly compounding.

glitterygert

Thank you YorkshireBoy

KingL

trashcan wrote: »

Hello,

I have been looking at my kaupthing edge transactions, and I can never get them to add-up. Why is it when I put money in, it does not add up. Say my balance is £4003.29 and I deposit £100 it should be £4103.29 but it never is: It is alway short.

And the interest what is meant by TDSI ? The interest never adds up either. How are you supposed to keep a check when you can't keep tally.

How do you Kaupthing edge users get on? Can you tell me where I am going wrong, or is is the bank fault?

Thank you.

There is an error in their report that generates their online statements (or it does on mine, anyway. Mine is a fairly new account). I reported it to them a month ago and they are supposedly going to fix it. it may explain your problem.

This is what is going on. Let's say you open an account and fund it with £1000. Lets say at the end of the month, you are due to receive £100 (gross interest) and then have £20 of tax deducted from that interest (aside - OK, OK, I know that you wouldnt get that much interest in a month - these numbers are just to keep it simple).

In this situation you would expect to see a statement saying this (N.B. most recent data is closer to the top).



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But the error in the report flips the top two lines around such that they are in the wrong sequence :




Note that your actual current balance is now actually on the SECOND line of the balance column, not the top line (i.e. the balance column does not recalculate the balances based on the reversed sequence of the two lines) . You will see that this value (from the second line of the balance column) is the same as the the "current balance" value reported in various other places in your web-account

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So lets say you now come along and credit another £500. From looking at the errored statement you mght expect to have a resulting balance of (£1100 + £500) =£1600, but, infact, your balance before adding the £500 was actually £1080 (not £1100), so the £500 credit will result in a final balance of £1580:



Could this explain your problem?


The error in the report occurs for each and every pair of lines associated with a monthly interest payment. If you dont use your account much and interest payments are the only things in your statement, it gets very complicated!

TDSI seems to be a descriptor for deduction of tax from interest payments. I have no idea what it stands for. I also suggested to them that they make these labels a bit more user friendly.

Oblivion

KingL wrote: »

TDSI seems to be a descriptor for deduction of tax from interest payments. I have no idea what it stands for. I also suggested to them that they make these labels a bit more user friendly.

TDSI is the Tax Deduction Scheme for Interest.

http://www.hmrc.gov.uk/tdsi/index.htm

Dave.

KingL

This is just to note that KE have just fixed the problem in their statement (described in my long and windy post 2 up from this one). Their statements now make sense !!

Does that resolve your problem, trashcan ?