How is interest calculated by banks?

NFH

callum9999 wrote: »

What do you mean by "value date"? The date appearing on the statement is always the date I've sent it and received it on - regardless of whether it's a working day or not.

So you have bank statements showing a value date of a non-working day? If so, which bank?

Mikeyorks

NFH wrote: »

No, there are no exceptions. Even FPS transactions always have a value date on working days only, never weekends or bank holidays.

No they don't.

And the main comment was against the freestanding bit of idiocy which read :

NFH wrote:

Bank transactions occur only on working days

.

NFH

Mikeyorks wrote: »

No they don't.

So you have bank statements showing a value date of a non-working day? If so, which bank?

opinions4u

NFH wrote: »

So you have bank statements showing a value date of a non-working day? If so, which bank?

Halifax and Bank of Scotland prior to 12th September 2011.

Mikeyorks

NFH wrote: »

So you have bank statements showing a value date of a non-working day? If so, which bank?

I don't do Bank statements - I have online transactions which show both FP and internal transfer accurate dates on non-working days. As I said on the original which, in your usual way you ignore, you need a Bank which doesn't believe that the day after Friday is Monday.

Now - back to your claim that :

Bank transactions occur only on working days.

???

Andystriker

NFH wrote: »

So you have bank statements showing a value date of a non-working day? If so, which bank?

Nat West, HSBC, First Direct

NFH

Mikeyorks wrote: »

???

My guess is that your bank is erroneously showing the booking date instead of the value date. The booking date is the date that the transaction is registered on the account, whereas the value date is the date that the transaction takes effect, primarily for interest accrual purposes. Although banks in many European countries show both value date and booking date in two separate columns on statements, UK banks usually don't, and instead show only the value date. UK banks usually show the booking date only for certain transaction types, usually involving cards, such as debit card purchases and cash withdrawals. For example, the booking date of a cash withdrawal could be a Sunday, but the value date could never be Sunday, but Monday, being the next banking day. Banks can manage their wholesale risk in the money markets only on valid GBP settlement days; therefore value dates on retail accounts will always likewise be GBP settlement days, which can never be weekends or UK bank holidays.

callum9999

NFH wrote: »

So you have bank statements showing a value date of a non-working day? If so, which bank?

I'm still not completely following what a "value date" is? On my online banking, when I transfer money to any of my banks: Nationwide, HSBC, Halifax, Santander, CO-OP or Natwest, the date that I send it (and as its FP, the day I receive it) is the day shown on the statement.

What do you expect to happen? A transaction done on Saturday 21st would show on your account as taking place in the future on Monday 23rd?

NFH

callum9999 wrote: »

What do you expect to happen? A transaction done on Saturday 21st would show on your account as taking place in the future on Monday 23rd?

Yes, Barclays for example shows the value date as being Monday 23rd. If you're seeing Saturday 21st as the date, then your bank is not showing you the value date (which is how interest and charges are calculated), but the booking date (mostly irrelevant except for audit purposes).

Mikeyorks

NFH wrote: »

My guess is that your bank is erroneously showing the booking date instead of the value date. .

My guess is that you are wrong. As you have been previously on both SO and BACS Direct Credit threads.

Now back to your assertion that :

Bank transactions occur only on working days

???