ybs fixed (15months)6.5% gross

oldfella

does anyone know how YBS treat interest in the period over a year ?

it says its 6.5% AER, but interest isnt paid until the end of term, which is 15 months. As AER is on the assumption that interest is paid after 12 months, for it to be a valid AER, I would guess they would need to pay compound interest over months 13-15 ?

BiggaThanBen

Is there a limit on debit card deposits, can I transfer 40K for example via HSBC debit card ?

Speculator

oldfella wrote: »

does anyone know how YBS treat interest in the period over a year ?

it says its 6.5% AER, but interest isnt paid until the end of term, which is 15 months. As AER is on the assumption that interest is paid after 12 months, for it to be a valid AER, I would guess they would need to pay compound interest over months 13-15 ?

On their website, it states...

NB. AER quoted assumes that the investment was made on 30 November 2008.

Therefore, if you made the deposit before this date, would the AER be lower than 6.5%?

Apreciar

Speculator wrote: »

On their website, it states...

NB. AER quoted assumes that the investment was made on 30 November 2008.

Therefore, if you made the deposit before this date, would the AER be lower than 6.5%?

If the savings were deposited for 15 months at 6.5% the AER would actually be 6.44%. The gross and AER can only be the same if it applies to an investment over one year at the gross rate compounded annually.

oldfella

its still not clear - if you invest on the 30 Nov, you should get 6.5% over the next 12 months, which as the term ends 31/1/2010, should therefore be compounded over Dec and Jan ? If you get 6.5% to end of Jan 2010, its not 6.5%AER.

Apreciar

oldfella wrote: »

its still not clear - if you invest on the 30 Nov, you should get 6.5% over the next 12 months, which as the term ends 31/1/2010, should therefore be compounded over Dec and Jan ? If you get 6.5% to end of Jan 2010, its not 6.5%AER.

If you want to use this timescale, Nov 30th, then you will have invested for 396 days (one year plus December 365+31)

So interest is calculated daily and added at the end of the term,
invest £1000 interest would be 1000*.065/365*396= 70.52

so to find AER 100*((1070.52/1000)^(1/(396/365))-1)=6.482446781

As stated in my earlier post for fifteen months it would be 6.44%.

sloughflint

Why not simply use the gross per annum rate quoted (6.5%) and get a daily interest from that and just not worry what the AER is? The AER will be different depending when the product is opened.

I cannot see how they can say AER 6.5 % only if the investment was made on 30/11. That would only make sense if the product ended on 30/11/09 not 30/01/10.A mistake?

ManAtHome

BiggaThanBen wrote: »

Is there a limit on debit card deposits, can I transfer 40K for example via HSBC debit card ?

Think the HSBC max is 10k - not sure whether that's per transaction or per day though, maybe worth a try...

BiggaThanBen

ManAtHome wrote: »

Think the HSBC max is 10k - not sure whether that's per transaction or per day though, maybe worth a try...

That's for bank transfers ..
It is not clear if this limit applies to debit card payments ..

jcl_2

BiggaThanBen wrote: »

Is there a limit on debit card deposits, can I transfer 40K for example via HSBC debit card ?

yes there is a limit of £10,000, but if you telephone your bank (HSBC) tell them what you want to do and you can transfer as much as you want with your debit card. funds are cleared in your ybs account next day.

on each occasion you want to transfer more than £10,000 with your debit card you must first notify your bank as your card will revert back to the normal limit.

did this myself today and everything worked fine.

regards
jcl