LTSB Incentive Saver

anamenottaken

nzseries1 wrote: »

Definitely AER.

2.96% pa is the gross rate for monthly interest where the AER is 3% AER !

whu

I've opened mine- was told it was a fixed rate but the confirmation letter says the interest is variable - does anybody know the correct position?

LittleVoice

nzseries1 wrote: »

Definitely AER.

Just checked online. I have an "old style" Incentive Saver which displays the interest rate in the style as in above screenshot.

It gives 2.75% AER but in fact this is the gross rate - as I check the monthly interest I am certain of this. The AER for this old account is actually 2.78%.

It seems they are simply not using the correct term ("AER" when it should be "gross").

opinions4u

LittleVoice wrote: »

Just checked online. I have an "old style" Incentive Saver which displays the interest rate in the style as in above screenshot.

It gives 2.75% AER but in fact this is the gross rate - as I check the monthly interest I am certain of this. The AER for this old account is actually 2.78%.

It seems they are simply not using the correct term ("AER" when it should be "gross").

Much as I said in post 40, prior to the benefit of the screenshot.

If it says "2.96% gross pa" that's correct, as the interest is added monthly and the compounding effect works out at 3.00% AER.

If it says 2.96% AER there is an error.

So does it say AER or gross online?

I find it odd that within the Halifax web site it states "gross pa" yet AER is used on Lloyds for exactly the same format.

10_66

10_66 wrote: »

...Does anyone know when the monthly interest should normally be added to the account, either end of month, beginning of month? The person I spoke to on the "help" desk didn't know, and it doesn't say on their conditions, apart from being paid monthly.

Zekko wrote: »

Interest is paid every month from account opening. So if you open on the 14th, interst is paid on the 14th of each month in the year.

I haven't received an interest payment on this account, the anniversary date is the the 9th (today). Does anyone know if, because of it being a weekend, the interest payment would be deferred until the next working day (ie Monday)?

johnmoney05

My first deposit £1 was on 6 Jun, interest credited on 6 Jul.

So yours should be on Monday I guess.

10_66

10_66 wrote: »

I haven't received an interest payment on this account, the anniversary date is the the 9th (today). Does anyone know if, because of it being a weekend, the interest payment would be deferred until the next working day (ie Monday)?

johnmoney05 wrote: »

My first deposit £1 was on 6 Jun, interest credited on 6 Jul.

So yours should be on Monday I guess.

Well, LTSB still haven't paid any interest on my account yet. The problems they're having with interest payments on some customers' accounts (post #73) obviously still have'nt been sorted out yet .

Edit: Have spoke to Savings team and interest is paid at 0.01 minutes past midnight on the day after the anniversary, so should be showing tomorrow morning.

welshlad

Thanks for this thread, was just about to transfer some cash over to Santander but opened one of these accounts over the phone. They also increased my ISA rate to 2.65% for 18mths

dazeruk

So my old incentive saver matured so I rang and got one of the new 3% versions opened.

As mentioned in other posts when I log in and check the interest rates I get the 2.96% AER.

Has this been confirmed as an error (ie it's actually displaying gross) or is the account really paying 2.96% AER?