Natwest (and other RBS cards) interest-free period

Milarky

It says:

"56 days for purchases if you pay your balance in full and on time and have paid the previous month's balance in full and on time"

.. and says essentially the same thing for all other RBS-issued cards like Tesco and Mint also.

This has me scratching my head but to use an example helps makes it clearer

1st Feb: Balance c/f £105 + £3 (interest c/f): £108 to pay by 25th Feb (min payment £5). Make £50 purchases AND pay previous statment balance of £108 on 25th Feb

1st March: Balance c/f £50 (purchases in Feb) + £1.50 (interest on £108 covering period between 1st Feb and 25th Feb when paid): £51.50 to pay by 25th March (minimum payment £5). Make £65 purchases that month. Pay £51.50 by 25th March

1st April: Balance c/f £65 (purchases in March) only.

As I see it, there's only interest from the £108 raised during February - which is treated like the purchases made in February - there's no 'interest on the interest' and it just gets consoldiated onto the purchases made. Provided this balance gets repaid in time then that's it. The £50 represents purchases on a statement that were repaid 'in full and on time' (on 25th March) and the previous statement balance (£108) was also repaid by the associated due date (25th February).

The only 'niggle' I have is that £1.50 of interest has to be included along with the purchases. Unless they just forget to mention that there is no 'interest on the interest' when talking about 'purchases'. However, even if there is 'interest on the interest' in that case, there should not be any interest on the February purchases themsleves, since all other conditons will have been complied with.

Any thoughts about this?