Cahoot -Why less interest paid out?

Patr100

I don't understand this. i just checked my Cahoot savings account statement. It is supposed to pay 4.85 AER - monthly interest
I haven't withdrawn anything since I opened it last year - Now I have been paid less interest for on Mar 1st than the previous month - why? The base rate hasn't changed - the rate for the account isn't listed as lower . so why the reduced interest? Am I missing something?

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Chippy_Minton

For interest paid monthly, the interest amount depends on the number of days in the month.

roswell

28 Days in February :-)

roswell

and the interest rate daily is 0.013287671

but dont ask me how to work out compound interest as its beyond my maths skills

grumbler

4.85% AER is 0.403%/0.390%/0.364% per 31/30/28-days month.

BTW, daily interest is 0.012976%, not 0.0132877%

Patr100

So I'm also losing a day's interest because it's not a leap year as well. This is a scandal!

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Lorian

Patr100 wrote:

So I'm also losing a day's interest because it's not a leap year as well. This is a scandal!

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By that logic you'd have lost a days pay too.

baldbloke_2

Patr100 wrote:

So I'm also losing a day's interest because it's not a leap year as well. This is a scandal!

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I seem to be missing your winking smiley or similar ...

If you leave money with them for 28 days you will receive 28 days interest and similarly in a 30 or 31 day month you will receive 30 or 31 days interest.
Not really a scandal is it?

Patr100

baldbloke wrote:

I seem to be missing your winking smiley or similar ...

If you leave money with them for 28 days you will receive 28 days interest and similarly in a 30 or 31 day month you will receive 30 or 31 days interest.
Not really a scandal is it?

I'm missing smileys? You mean they've been stolen from me as well? First I get robbed of interest and now this. No wonder I'm annoyed.

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roswell

Sorry Grumbler ... back to 2 minute maths room 17 for me :-) .... im so pleased i dont work in finance

afro_2

Surely the daily rate will be slightly lower in a leap year, to make up for the extra day?