Nationwide Fixed Rate bonds - Interest

Cardew

My 3(tax paying) children have each a invested considerable sum from an inheritance in a 1 year fixed bond with N/W at 6.7% gross, 5.36% nett.

Their bond matures later this month and each have received a forecast of maturity value.

In each case this quoted maturity value is a few pounds short of the interest calculated from 5.36% of the capital invested.

Before they take this up with N/W has anyone any idea of the reason?

A secondary question.
2008 was a leap year, is there not a case for an extra day's interest?

isofa

No, very unlikely you'll get extra money due to a leap year, but equally people aren't charged an extra day on their mortgages either.

The maturity value, if it's an annual rate (or use the AER) the calc should be simply the amount deposited * rate. If it is differing from this, then discuss it with NW.

Cardew

Well in 3 cases the maturity value is a few pounds less than it should be; might be worth other people checking!

They have queried it with N/W and I will update this thread.

It makes you wonder if a similar error might exist on their other accounts e.g. E Saver. With the changing amounts in the account and varying interest rates it would be very difficult to check accurately!

Paul_Herring

Is it possible, that the bonds were due to mature on (say) a Sunday, and you've been given the maturity value based on the previous Friday?

You say it's a 'couple of pounds,' but without more context we can't say for certain. If the interest expected is (say) around £360 then this could account for it.

stevetodd

Cardew wrote: »

My 3(tax paying) children have each a invested considerable sum from an inheritance in a 1 year fixed bond with N/W at 6.7% gross, 5.36% nett.

Their bond matures later this month and each have received a forecast of maturity value.

In each case this quoted maturity value is a few pounds short of the interest calculated from 5.36% of the capital invested.

Before they take this up with N/W has anyone any idea of the reason?

A secondary question.
2008 was a leap year, is there not a case for an extra day's interest?

My bond arrived in the post today and I think I can see from the info on my bond why. My bond started the day I signed up and matures 6 months later (1 year for you) but interest is not earned from cheque opeing bonds until the second working day, thus losing a small amount of interest.

pem2

My online NW 6.7 matured a couple of weeks ago and coming up to maturity the amount advised to me on there secure messaging was a couple of pounds short. I checked on this forum (but I can't find the post now) that someone else had noted this and an informed poster believed that they take/denote a minor amount to charity which you have agreed to in the T&C's. However in my case on maturity the amount was slightly more than I was expecting, to be exact my 11k had grown to £11590.11.

Cardew

In this case the payment was by transfer from cleared funds in Flexaccount(from Esaver) so a cheque is not the reason.

The shortfall doesn't correspond to a day's interest.

I wasn't aware of a donation to charity - seems strange that it would be hidden away in T&C's

No big deal, I am just intrigued and wondered if there was an explanation

noh

I had a Nationwide 1 year fixed rate e-bond mature today.
In the month before the estimated amount of interest was a couple of pounds short of the amount it should have been. When it was paid today it was about 40p more than I had calculated.
So I wouldn't worry about the projected amount.

Nigel

alanq

I am not aware of Nationwide doing charity donations from interest. I know the Yorkshire B.S. offers to give the odd pennies of interest to charity. I too had a Nationwide bond mature recently for a couple of pounds less than expected. I was about to complain but checked and found that in this case the account had been opened with a cheque and not a transfer.

Cardew wrote: »

In this case the payment was by transfer from cleared funds in Flexaccount(from Esaver) so a cheque is not the reason.

You'd have thought not but I closed one bond earlier in the year in branch and paid the money into my Flexaccount. Fortunately I made a cash withdrawal immediately after and discovered that the teller had credited the Flexaccount as if I'd paid in a cheque. They put it right when I complained.

Paul_Herring

Cardew wrote: »

Their bond matures later this month and each have received a forecast of maturity value.

In each case this quoted maturity value is a few pounds short of the interest calculated from 5.36% of the capital invested.

I alluded to this in an earlier post, but think I need to make it explicit.

1) When did the bond start? According to NW, not from your records.
2) How much was saved?
3) What is the date of maturity?

wakeupalarm

What is the interest rate on the ebond maturity account. I can't seem to see it stated anywhere?