Interest on LLoyds Vantage

Botany

Hello, can anyone tell me how much interest you are getting on your Lloyds Vantage account?

Let me explain my question. Lloyds Vantage is supposed to yield 4% gross AER, which is 3.93% Gross or 3.14% net (I'm quoting the T&C which I have printed in front of me). Now, according to my calculations and indeed according to Martin's savings calculator, a balance of 7K should yield £18.40 monthly for basic taxpayers (I am a basic taxpayer). My online balance shows my interest as being paid NET, and yet I seem to get an amount of interest (about £23 pm) which seems to be the gross interest.

Now, I am a basic taxpayer and I have never filled in a R85 form in my life, so why is it that i seem to be given interest without the tax being taken off?

I'm wondering whether I should go to my local branch and ask about this but I thought i'd post here before I risk making a fool of myself because perhaps it is not Lloyds making a mistake (paying me too much) but it is me not using the right formula to calculate the interest I'm actually due as a basic taxpayer. Could another fellow basic taxpayer please check their own statements and tell me how much you get on a 7k balance and/or how much I should be getitng?

YorkshireBoy

One of mine yielded £18.35 last month.

On a static balance the net interest should be:

Balance x 0.0393 / 365 x n x 0.8

Where n = number of days in the period and 0.8 is the tax multiplier.

On a fluctuating balance you'll have to calculate each day's interest separately and then sum them up.


EDIT: On a separate, but linked, issue...have you had your April interest added yet? I ask because mine's not yet gone on.

Botany

Thank you Yorkshire boy.

In answer to your question, April's interest will be added today late in the afternoon. I called this morning and asked them and they said that the delay is due to the bank holiday, so check your statement again later today.

As for the amount of interest you quote - this confirms my suspicions that someone at Lloyds must have mistaken me with somebody else and giving me interest gross of tax. Hopefully I'll find the time to pop into my local branch and speak to someone face-to-face to ascertain what is going on.

JasX

Botany wrote: »

this confirms my suspicions that someone at Lloyds must have mistaken me with somebody else and giving me interest gross of tax. Hopefully I'll find the time to pop into my local branch and speak to someone face-to-face to ascertain what is going on.

If all your paperwork says you're being paid net interest, you've already given them all the correct details once and somehow they're screwing up and paying more interest than you're expecting I'd quite happily keep quiet about it.

Lloyds have never struck me as having the most organised systems, they left me with a £2,000 interest free overdraft for 5 extra years after they didn't notice the 3 year anniversary of me leaving uni they should have taken it away on.

plus I was getting a ton of freebies from a £10 per month 'gold' account they wern't actually charging me anything for.

eventually they noticed and took my free stuff away, no attempt at back charging anything tho


PS another explanation woudl be if you have significantly more than £7,000 in the account as a lower interest rate applies above this but you still get something

MoneyStudent

Botany wrote: »

Thank you Yorkshire boy.

In answer to your question, April's interest will be added today late in the afternoon. I called this morning and asked them and they said that the delay is due to the bank holiday, so check your statement again later today.

As for the amount of interest you quote - this confirms my suspicions that someone at Lloyds must have mistaken me with somebody else and giving me interest gross of tax. Hopefully I'll find the time to pop into my local branch and speak to someone face-to-face to ascertain what is going on.

Just wondering if anyone else has received their interest yet?
I only set up my vantage accounts last month so this will be my first lot of interest.

simax

Not yet, no. Usually got it by mid-morning?!?!?

mclaren32

I think the intrest is paid on the 2nd working day of the month so because of the bank holiday its a bit late this month.

10_66

Botany wrote: »

Hello, can anyone tell me how much interest you are getting on your Lloyds Vantage account?

Let me explain my question. Lloyds Vantage is supposed to yield 4% gross AER, which is 3.93% Gross or 3.14% net (I'm quoting the T&C which I have printed in front of me). Now, according to my calculations and indeed according to Martin's savings calculator, a balance of 7K should yield £18.40 monthly for basic taxpayers (I am a basic taxpayer). My online balance shows my interest as being paid NET, and yet I seem to get an amount of interest (about £23 pm) which seems to be the gross interest.

Now, I am a basic taxpayer and I have never filled in a R85 form in my life, so why is it that i seem to be given interest without the tax being taken off?

I'm wondering whether I should go to my local branch and ask about this but I thought i'd post here before I risk making a fool of myself because perhaps it is not Lloyds making a mistake (paying me too much) but it is me not using the right formula to calculate the interest I'm actually due as a basic taxpayer. Could another fellow basic taxpayer please check their own statements and tell me how much you get on a 7k balance and/or how much I should be getitng?

Take a look at THIS link to see if that helps you. It explains how LTSB calculate the number of days on which they pay interest. The link isn't about Vantage, but the number of days calculation would be the same.


.

simax

mclaren32 wrote: »

I think the intrest is paid on the 2nd working day of the month so because of the bank holiday its a bit late this month.

I thought it was the next working day after the 2nd?

preable

simax wrote: »

I thought it was the next working day after the 2nd?

Yup you are right :T

yorkiebar

Still no interest here