Wrong calculation of interset?

Lokolo

sloughflint wrote: »

Simple terms?
Interest is calculated daily. I gave the multiplier to get the exact interest. Is that not simple enough then?
Clearly less than 1 gives less anticipated interest and greater than 1 gives more then anticipated.

Ha well some people don't like to look at numbers

YorkshireBoy wrote: »

I don't think that's correct Lokolo. You always earn interest at the quoted 'gross p.a.' rate. The AER itself is derived from the gross p.a. rate paid along with compounding/compounding frequencies.

Ssh

Hungerdunger

Gwhiz wrote: »

All this for £12.05 (and you may be in the wrong anyway!!!). Get a life! :rolleyes:

So the next time you're in a shop and shortchanged by £10, can we assume you'll just accept it?

Gwhiz

Hungerdunger wrote: »

So the next time you're in a shop and shortchanged by £10, can we assume you'll just accept it?

No, I'd discuss it with the people involved directly rather than bleat on about it on an Internet forum!

sloughflint

Lokolo wrote: »

Ha well some people don't like to look at numbers

Bit of a problem then if one is considering whether a bank has miscalulated interest as the title suggests.

derrick

Gwhiz wrote: »

All this for £12.05 (and you may be in the wrong anyway!!!). Get a life! :rolleyes:

I think this has been answered in post #23!

Hungerdunger wrote: »

#23 So the next time you're in a shop and shortchanged by £10, can we assume you'll just accept it?

Gwhiz wrote: »

No, I'd discuss it with the people involved directly rather than bleat on about it on an Internet forum!

Read my OP, I was asking for some confirmation that they could do this before going and doing more!

derrick

YorkshireBoy wrote: »

So they can't advertise "7.01% Gross/AER" in a leap year if they're using 366 days then?

How was the offer originally described Derrick?

I will post the leaflet that explains.

derrick

Image does not seem to have come out very well, but I think you can see the points in it.

derrick

Bear in mind this is a "1 year fixed rate bond", it was taken out 1st August 2008, it matured 31st July 2009, the Derbyshire had the money for 1 year,(365 days), my commitment was fulfilled, theirs isn't.

To reply to those who think I should "get a life", turn the situation round, if I borrowed money from the Derbyshire and upon maturity I paid them £10 less than they said I owed, I am sure they would not just let it ride, they would send in all the artillary, lawers, baillifs, county court, credit blacklist etc, so if you have nothing constructive to say, then don't bother wirth snide comments.

sloughflint

Derrick, I am not saying get a life but you are wasting your energies here.
They have fulfilled their commitment.

The interest rate is fixed and we calculate interest
on the sum you invest daily from the day after
we open your account, up to and including the
date of maturity.

The rate ( gpa) was fixed at 7.01%. They calculated a daily amount on the 365 days you invested and paid it on maturity.
If you'd have opened the account on say 1st Dec 07, you'd have got more than you expected. Would you have alerted them of 'their mistake' and insisted on giving some back?

derrick

sloughflint wrote: »

Derrick, I am not saying get a life but you are wasting your energies here.
They have fulfilled their commitment.
The rate ( gpa) was fixed at 7.01%. They calculated a daily amount on the 365 days you invested and paid it on maturity.
If you'd have opened the account on say 1st Dec 07, you'd have got more than you expected. Would you have alerted them of 'their mistake' and insisted on giving some back?

Sorry I disagree, this is a fixed rate bond @ 7.01% for 12 months the gross interest on that is £10515, not £10502.95. They had the money for 12 months I just want what was agreed.
This will go to the FOS and let them decide, as I said earlier it won't cost me much, but will cost the Derbyshire, this is blatant robbery IMO.

I don't have a degree in maths, but this is so basic even a monkey could understand it,(no reference to anyone on this thread).

The reference to 1st Dec 07 is academic and hypothetical as it didn't happen so is irrelevant.