Barclays statement for 2009/2010

MsWow

Hi
I’ve just receive my Golden ISA statement and I’m confused. I thought their interest rate dropped at 2.58% some stage, but on my statement says:
Credit interest rate: 2.55%
In addition to the rate(s) above, currently your account is also receiving an introductory bonus of 1% gross.
Also if I calculate the rate applied for each month, it gives me the same interest rate: 3.55%.
Just to double check, I’ve calculated the rate like this:
(AxB/36500) x C
A- My balance
B - interest rate
C- Number of days for that month
Is it correct???
Has anyone receive their statement for 2009/2010???

OneADay

If you are trying to work out interest per month, you need to look at the interest earned in that month and divide by previous months balance to get approximate interest earned in month.

The formulae is not right. Approximately I think you will get 3.55/12 interest per month - which can vary from 0.23 to 0.27 (just rough calculations I done myself as I had Golden Isa between April 2009 and closed in Dec 09.

withabix

2.58% is compound, 2.55% is the flat rate.

Barclays ISA interest is paid monthly and depends on the number of days in each month as well.

Sanzai

That equation is fairly close to the right answer. Per day, the amount of money in your account is multiplied by a factor of 1.0000955782710201481736351200699.

You get this by working out the 365th root of 1.0355, which is the interest rate you believe you have on the account.

So, to work out how much interest you should get in a month you can follow this formula:
Interest = (A x 1.0000955782710201481736351200699^C) - A
Where A is your balance at the start of the month, C is the number of days in the month, and ^ means 'to the power of'.

OneADay

And as I recall, them dropping the rate was why I moved my money to another provider.

koopa_coffee

The rate wasn't dropped for those who took out the account before the 31 May 2009, so you had no reason to transfer back in December...

OneADay

koopa_coffee wrote: »

The rate wasn't dropped for those who took out the account before the 31 May 2009, so you had no reason to transfer back in December...

Ah well - I think I was doing it to combine Isa accounts with different providers into one lot - now with m&s getting 4%.

Might be more careful in future - about to enter the A&L 3.5% stampede for next year.

MsWow

OneADay wrote: »

If you are trying to work out interest per month, you need to look at the interest earned in that month and divide by previous months balance to get approximate interest earned in month.

The formulae is not right. Approximately I think you will get 3.55/12 interest per month - which can vary from 0.23 to 0.27 (just rough calculations I done myself as I had Golden Isa between April 2009 and closed in Dec 09.

I know that is not 100% accurate but I can make a rough idea if my ISA is 3.55% or 2.55%. Right?

withabix wrote: »

2.58% is compound, 2.55% is the flat rate.

Barclays ISA interest is paid monthly and depends on the number of days in each month as well.

I know that the interest is paid monthly and that depends on the number of days, but when I’ve calculated the interest with this simple formula, I had almost the same numbers as Barclays.

Sanzai wrote: »

That equation is fairly close to the right answer. Per day, the amount of money in your account is multiplied by a factor of 1.0000955782710201481736351200699.

You get this by working out the 365th root of 1.0355, which is the interest rate you believe you have on the account.

So, to work out how much interest you should get in a month you can follow this formula:
Interest = (A x 1.0000955782710201481736351200699^C) - A
Where A is your balance at the start of the month, C is the number of days in the month, and ^ means 'to the power of'.

Wow, thanks for that. I was shocked when I found out that my ISA pays 3.55% :j:beer::beer:

koopa_coffee wrote: »

The rate wasn't dropped for those who took out the account before the 31 May 2009, so you had no reason to transfer back in December...

Koopa_coffee
I didn't know that. Thanks for the info.
Does it mean that starting with 6th April 2010 I will have 3.55% interest for the money saved there?