New MSE Bank Charges Interest Calculator

johnbrooks

Quote: "We used this standard method of calculating daily interest

i.e. (1.08^(1/365))-1 = 0.000210874"

Thanks to whoever merged my post into this thread - don't know why I didn't spot it.

The general formula (1+x)^n where x is the rate of interest and n is the number of periods is the compound interest formula!!!!!!! Using 1/365 for n does not give you simple daily interest! It gives you compound interest for 1/365th of a period.

Daily simple interest is simply(!) x/365 (or 366 in a leap year)

Pramms_2

Hi,
How does the intertest calular work. If I insert £1 of charges, it gives a -11p interest, and shows i need to clain 79p.

Please clarify .
thanks
Pramms

elainecap

Hi, thanks to everyone for their great tips over the years. I've been using the interest calculator on the site but when I add each charge to the list to be saved the date and month swap places, hence 12.08.2003 becomes 08.12.2003, making the interest incorrect. Has anyone else found this and if so did anyone find a way to overcome the problem. If not I'll just type out the information instead of printing it off.
Thanks, elainecap

Edinburghlass_2

elainecap I've added your post to this thread and I'll let MSE Dan know this problem and see if he can answer you.

Rex_Mundi

I've just had a go with some sample charges. Although the calculator switches around the date and month when you add them to the list (making an american style date). It never altered the amount of interest.

johnbrooks

I'm still concerned that the calculator gives the wrong answer - see my post no. 22 above. I hope MSE Dan can comment on this as well.

Edinburghlass_2

I have linked MSE Dan to this thread but with the Festive holidays I'm not sure who is working when so keep watching the thread.

johnbrooks

Just to bump this up the list!

Edinburghlass_2

Funnily enough MSE Dan has just been in touch to say he is looking at the thread and once he has finished his box of Quality Street will be answering the questions asked last week

maniac886

Edinburghlass wrote:

Funnily enough MSE Dan has just been in touch to say he is looking at the thread and once he has finished his box of Quality Street will be answering the questions asked last week

Lol, ask him if I can have one please??