Lloyds Vantage Account - Wrong Interest?

RocketPig

I have £6268.83 in one of my accounts and I have paid over £1000 into this month so I qualify for the 4% (3.2% after tax?)

However I noticed my interest was only £13.77 when it should have been £16.48.

Yes I know its pennies but it adds up...I've used Martins saving calculator and Google to work it out and they both return £16.48.

Comments please?

td_007

Is this for the entire month or part?

RocketPig

The £6268.83 was added over the course of Nov 3rd to Dec 1st. Does it make a difference? I was under the impression they tallied up your balance at the end of the month and apply the interest the next day.

savetilibleed

Mine is wrong as well. I keep exactly £7000 in one Vantage account only moving the interest out when I get it and doing a between Vantage accounts transfer of £1000 in one session by paying £1000 in from the other account so it didn't fall to £6000 even for a few minutes, rather going up to £8000 for a few minutes. My interest was £17.49 which works out to about 29 days, not 30 days, which should be £18.07.

The other account which is my main everyday account, only fell below £7000 for a few minutes but that paid slightly different at £17.51.

I'm wondering if they will notice (I'm giving it a chance anyway).

RocketPig

So interest is calculated daily, in which case for maximum interest you'd want a minimum of £7000 in the account at all times. Also I was under the impression interest is paid on the 2nd of each month and not the first.

YorkshireBoy

RocketPig wrote: »

The £6268.83 was added over the course of Nov 3rd to Dec 1st. Does it make a difference? I was under the impression they tallied up your balance at the end of the month and apply the interest the next day.

Interest is calculated daily on that day's closing cleared balance...

Closing balance x 3.93% / 365

The sum of these 28/29/30/31 days' individual interest figures is then subjected to 20% savings interest tax if you're a tax payer before being credited to your account.

Think about it...it's not paid based on the last day's balance otherwise we'd all be depositing on the last day in the month, and then withdrawing the next!

RocketPig

So put in plain English. If you had £7000 in the account but for one day, and then nothing for the rest of the month, you'd only get 1 days interest? Makes sense now!

Cheers

td_007

RocketPig wrote: »

So put in plain English. If you had £7000 in the account but for one day, and then nothing for the rest of the month, you'd only get 1 days interest? Makes sense now!Cheers

Looking back it seems as if you have got interest for 25 days for the amount you mention - does this match up with actual money transactions. Also, Vantage interest rate is 4% AER or 3.93% Gross - it is easier to use the later for daily/monthly interest calculation.

RocketPig

td_007 wrote: »

Looking back it seems as if you have got interest for 25 days for the amount you mention - does this match up with actual money transactions. Also, Vantage interest rate is 4% AER or 3.93% Gross - it is easier to use the later for daily/monthly interest calculation.

To be honest its hard to tell, I put a few grand in there on the 3rd november and added to it every now and then. As opposed to dumping £6k in at the start.

td_007

RocketPig wrote: »

To be honest its hard to tell, I put a few grand in there on the 3rd november and added to it every now and then. As opposed to dumping £6k in at the start.

That complicates it some more If you want to be sure use the formula that YB mentions above calculating actual number of days different amounts were present in your a/c - setting up an excel sheet will be easier. Overall it sounds as if the interest you got is about right.:beer:

RocketPig

td_007 wrote: »

That complicates it some more If you want to be sure use the formula that YB mentions above calculating actual number of days different amounts were present in your a/c - setting up an excel sheet will be easier. Overall it sounds as if the interest you got is about right.:beer:

Yep, I trust Lloyds hah.

THanks everyone for the input.