NatWest E-ISA - help/advice please

GFA

I logged into my NatWest E-ISA and noticed that the interest credited to my account monthly has steadily decreased since June. I have not made any withdrawals and in fact have made monthly deposits into the account. I have spoken to NatWest and I'm waiting for a manager to call back but I have initially been told that the difference is due to the number of days in the month when the interest is calculated. However, I pointed out that there is a £10 difference (less) between the interest credited in June compared to that credited at the end of September. As mentioned before, there have been no withdrawals and I have been paying money into the account since I opened it in April. Correct me if I'm wrong but i think the interest credited should be more not less, especially as there has been no change in their interest rate? NatWest has agreed that the situation seems strange and will look into it further .

How do I calculate what the interest should be monthly?

Thanks!

rb10

GFA wrote: »

How do I calculate what the interest should be monthly?

Balance * Interest Rate / 100 / 365 * Number of days in interest payment period

Should be correct, plus or minus a few pence.

Post a copy of your statement if you'd like someone to check it over for you - a second pair of eyes may be able to spot why the interest is decreasing.

GFA

Thanks for that. I may post my statement depending on the response I get from NatWest - if I do get one.

Thanks again.

littlemissbossy

Mine is the same, although I am not adding to it every month as I am up to my limit, I put it down to how many days between the last interest date and the current interest date. It does seem to work out correct.

HTH

Mechanical

If it helps, the interest rate on a Natwest e-isa was reduced around about May/June-ish which is why I transferred my funds elsewhere.

GFA

Mechanical wrote: »

If it helps, the interest rate on a Natwest e-isa was reduced around about May/June-ish which is why I transferred my funds elsewhere.

During my initial call to Natwest, they confirmed that the rate on my E-ISA is still the same but they no longer offer the 1% bonus on the E-ISAs (opened after May this year). Mine was opened in April so I am unaffected by this change. I have since checked their website and it does appear to confirm my telephone conversation with them. I'm still waiting to hear from them but I will do the maths to double check their figures soon!

lisyloo

I have the same product as you and NatWest are a bit haphazard about how they do it.
So for example I have interest on
31st Jul
31st Aug
27th Sep

September is less but I would expect that as it's only for 27 days per month.
You should be able to calculate this for yourself appromiately as in post #2.
So for September I would use 27 days.
it's not absolutely exact because of compounding, but it should be very close within a few pennies.

So, the months are varaible lengths but there is absolutely no reason why anyone that owns a calculator shouldn't be able to check it against the info on their statement.

Have you been able to check it?

If not perhaps you need to post some details so that folks that help you.

Mechanical

GFA wrote: »

During my initial call to Natwest, they confirmed that the rate on my E-ISA is still the same but they no longer offer the 1% bonus on the E-ISAs (opened after May this year). Mine was opened in April so I am unaffected by this change. I have since checked their website and it does appear to confirm my telephone conversation with them. I'm still waiting to hear from them but I will do the maths to double check their figures soon!

Oh I see.
I was already an existing customer and was informed after 06 April this year that the rate for my e-isa was going to be reduced. New customers, if I remember correctly were offered a better rate, so I said bye.
Why do they do that?

GFA

lisyloo wrote: »

I have the same product as you and NatWest are a bit haphazard about how they do it.
So for example I have interest on
31st Jul
31st Aug
27th Sep

September is less but I would expect that as it's only for 27 days per month.
You should be able to calculate this for yourself appromiately as in post #2.
So for September I would use 27 days.
it's not absolutely exact because of compounding, but it should be very close within a few pennies.

So, the months are varaible lengths but there is absolutely no reason why anyone that owns a calculator shouldn't be able to check it against the info on their statement.

Have you been able to check it?

If not perhaps you need to post some details so that folks that help you.

I started doing this but was interrupted. I haven't managed to check the latter interest payments but I will do so.

GFA

Mechanical wrote: »

Oh I see.
I was already an existing customer and was informed after 06 April this year that the rate for my e-isa was going to be reduced. New customers, if I remember correctly were offered a better rate, so I said bye.
Why do they do that?

It is frustrating isn't it? I end up moving my ISA to a different provider every year without fail (although since discovering Kazza242's post on this forum on mini cash ISAs, it makes this process a lot more easier!)

lisyloo

Why do they do that?

Becuase the vast majority of people won't bother mmoving their money so Nat West benefit financially.
About 85% won't bother.