Leap year interest

panadero

Deposit account holders with Cheshire BS should carefully check their interest calculation for any account opened after 29 February 2008. Especially if the deposit is a large one. This is because for 2008 Cheshire used 366 days for the interest calculation instead of 365 days. Fine if your account was open pre-29 February 2008 but otherwise you will find yourself short-changed. I complained to Cheshire and received £5. Some lenders use such little "tricks of the trade" to boost their profits. For information,

Milarky

panadero wrote: »

I complained to Cheshire and received £5.

But did they admit any wrongdoing (e.g. breach of the Banking Code on clear information) or was it just hush money?

The amount of interest at issue would be no more than 1p in every £3.65 - £1 for every £365....

Nick_C

panadero wrote: »

Deposit account holders with Cheshire BS should carefully check their interest calculation for any account opened after 29 February 2008. Especially if the deposit is a large one. This is because for 2008 Cheshire used 366 days for the interest calculation instead of 365 days. Fine if your account was open pre-29 February 2008 but otherwise you will find yourself short-changed. I complained to Cheshire and received £5. Some lenders use such little "tricks of the trade" to boost their profits. For information,

They, like anyone else, used 366 because thats how many days there were last year. Swings and roundabouts, and covered previously in

http://forums.moneysavingexpert.com/showthread.html?t=1336045

gozomark

do borrowers pay for 366 days ? If so, its not a "trick of the trade"

arcadia00

It is a trick because the broader industry do pay you for the leap day.

It is not a trick because the tricksters will have it in their T&C's.

opinions4u

arcadia00 wrote: »

It is a trick because the broader industry do pay you for the leap day.

This thread is silly.

Which banks increase their AER by 1/366% in a leap year?

I congratulate you for getting a fiver out of the ridiculous!!

arcadia00

opinions4u wrote: »

This thread is silly.

Which banks increase their AER by 1/366% in a leap year?

From my experience, most do.

dwsjarcmcd

If you have about £10m in the account this may just about be worth it (but then again you probably don't care!)

Money_Grabber13579

Short changed, as in how much short changed? If you invested up to the guaranteed limit of £50000, you would be short of just over £4 interest assuming the rate is 3% before tax. Is it really worth all the hassle just to get an extra £4? Especially when you'd have £50000 to begin with.

This is just ridiculous.