Lloyds TSB Cash ISA - Interest statement

Bogof_Babe

OH has had a Lloyds Cash ISA for a few years. His opening balance in April 2011 was £29.5K. His closing balance April 2012 is nearly £35K. His current agreement is 2 Year Fixed, commenced May 2011, @ 3.6%.

He has just received his annual statement, which says:
Gross Interest Paid for Tax Year 6 April 2011 - 5 April 2012 = £82.58.

Surely some mistake?

badger09

Bogof_Babe wrote: »

OH has had a Lloyds Cash ISA for a few years. His opening balance in April 2011 was £29.5K. His closing balance April 2012 is nearly £35K. His current agreement is 2 Year Fixed, commenced May 2011, @ 3.6%.

He has just received his annual statement, which says:
Gross Interest Paid for Tax Year 6 April 2011 - 5 April 2012 = £82.58.

Surely some mistake?

Just a guess

If he moved an existing ISA to a 2 year fixed rate in May 2011, I wouldn't expect any interest to be credited until May 2012 .

Could the £82.58 be interest on a previous ISA for the period since it was last credited on that ISA up to May 2011?

Bogof_Babe

Thanks Badger. That is indeed a possibility. Think he'll have to call in at his branch to find out. He doesn't like phoning call centres, and they won't talk to me as it's not my account.

They don't make it very clear on the statement though. Bet it catches a lot of people out.

badger09

Bogof_Babe wrote: »

Thanks Badger. That is indeed a possibility. Think he'll have to call in at his branch to find out. He doesn't like phoning call centres, and they won't talk to me as it's not my account.

They don't make it very clear on the statement though. Bet it catches a lot of people out.

You should be able to work it out (roughly).

Balance when last interest credited multiplied by previous interest rate% multiplied by xx days since then to date of transfer divided by 366. Sorry if you already know how to do this, but a lot of posters don't