Reaching out to the interest/mathematic gurus. How much interest has been lost?

Nine_Lives

I asked in the ISA forum but i'll probably get a quicker response here. I don't suspect that it's going to be a lot, but in this case it's not the issue.

Bear in mind: This is an ISA.

Here's the situation:

K_P83 wrote: »

6th September 2011 // Statement Opening Balance // balance = £5,228.53
4th October 2011 // Withdrawal of £2,502.34 // balance = £2,726.19
Then came the transfer request the other week
22nd March 2012 // Interest (Gross) of £101.12 // balance = £2,827.31
22nd March 2012 // Closed Account

Now the rate was 3.2% ......... assuming the account was kept credited with £1+ for 12 months.

What should've happened is that 22nd March, instead of it being closed, it should've left £1.00 in the account.
This £1.00 would've stayed in the account until 7th September meaning...
3.2% on £5,228.53 from 6th Sept 2011 to 3rd Oct 2011.
3.2% on £2,726.19 from 4th Oct 2011 to 21st March 2012
3.2% on £1 from 22nd March 2012 to 6th Sept 2012.


Instead, due to a mistake by the bank, the entire amount has only received 3.00%. The 0.2% has been scratched.

As we know this mistake has generated an interest figure of £101.12 ... what would the interest have been on the above had the bank not made this mistake?


Also, if you have time could you show your working out too so i can see how you do it? Thanks.

pvt

It's about seven quid.

Vent your anger by kicking the cat and then move on - it's hardly worth pursuing.

Though the 1p interest on you £1 might make a difference....

pvt

Oops - I can see from your other post that you're actually serious about this.

It's £6.74 (1/15 X £101.12) plus the 1p for the £1 for six months = £6.75 in total.

Hope Marmaduke managed to dodge you before I got the answer to you.

Ben8282

I'm sorry but I can't agree the figure of £101.12 for the interest actually paid. Your figure is way, way off for 3% pa.

Could you please verify that all figures and dates stated are correct.

I was trying to make an accurate calculation for you but the following rough calculation with over-estimated rounded figures is sufficient to show that the figure of £101.12 is simply not possible.

The account was opened on 6/9/11 with a balance of £5228.53 which was reduced to £2726.19 after aprox 1 month and remained at that level for approx a further 6 months. Note that I have overstated the lengths of time.

Now 3% of £5228.53 is £156.86. So if £5228.53 had been deposited for 1 year it would have earned £156.86, so for 1 month £156.86/12 = £13.05.

3% of £2726.19 is £81.79. So if £2726.19 had been deposited for 1 year it would have earned £81.79, so for 6 months £81.79/6 = £40.92.

Total interest payable therefore £13.05 + £40.92 = £53.97 not £101.12

More accurate calculations produce similar, slightly lower, results.

Nine_Lives

Of course I'm serious. The issue here isn't the amount. The difference could be 1p for all I care. The issue is that the banks have not acted properly. They've torn up the transfer sheet & decided themselves what will happen when the original request was perfectly fine.

Why just lay down & let them do what they wish??!

As for confirming the figures - yes they are all correct ... I re-typed them off the statement which came from Halifax via post yesterday.

Stompa

K_P83 wrote: »

Why just lay down & let them do what they wish??!

Probably best to keep quiet, they appear to have paid you a rate of around 6.2%!

Nine_Lives

In th case something has gone seriously wrong, obviously.

The date doesn't sound right to me - we generally open accounts around th

Nine_Lives

In th case something has gone seriously wrong, obviously.

The date doesn't sound right to me - we generally open accounts around thE same time as each other, with me being first as the sort of guinea pig ... And I opened mine in May 2011. I was sure hers was opened around the same time.

Ben8282

K_P83 wrote: »

In th case something has gone seriously wrong, obviously.

The date doesn't sound right to me - we generally open accounts around thE same time as each other, with me being first as the sort of guinea pig ... And I opened mine in May 2011. I was sure hers was opened around the same time.

I notice that your OP says

'6th September 2011 // Statement Opening Balance' and not account opening balance.

Looks as if the account was opened/money deposited prior to 6th September.

If you give incomplete/misleading information you just waste the time of those who might have assisted you ....

thegoodman

The op hav a very very difficult life or making things up. A problem a day
How many people you know have these many problems
See other posts
http://forums.moneysavingexpert.com/search.php?searchid=123590203

Nine_Lives

Well now it seems that the issue has duplicated ... as my own ISA is no longer showing in my Halifax online banking account.
Instead of it being for £2.7k in the case of my gf, it's now for £17.7k.

Ben8282 wrote: »

If you give incomplete/misleading information you just waste the time of those who might have assisted you ....

Would you like me to scan the statement as sent out by Halifax so that i can SHOW YOU that this is the only information we have to go off? Due to it no longer showing in the online banking section.

I can only give the information that i have at my hands, no more.

thegoodman wrote: »

The op hav a very very difficult life or making things up. A problem a day
How many people you know have these many problems
See other posts
http://forums.moneysavingexpert.com/search.php?searchid=123590203

Why the hell do you follow me around this message board? Don't like what i post? Sod off & don't read it or reply to it. Simple.

I really don't understand your obsession with me.