Interest Received - could someone please double check?

rb10

mania112 wrote: »

I think the issue is with the deposit(s) in the month of October.

2nd October 2011 - you paid something
7th October 2011 - Interested was added and balance was £8,866.24
2nd October 2012 - you paid £300
7th October 2012 - Interested was added including only 5 days interest in October 2012 and the remaining days of the month (if you like) accrued last year, when the balance was lower.

No - I'm calculating the total interest by counting the number of days - so I'm taking the balance of £8,866.24 for the 26 days between 7 Oct and 2 Nov 2012, and so on up to the final balance of £11,866.24 for the 5 days between 2 Oct and 7 Oct 2012.

As the account pays 0.1% in any month in which you pay in under £100 or over £300, and £36 is roughly the amount that I was accruing each month, I imagine that Santander have - for some as yet unknown reason - paid me 0.1% in one of these months.

[Deleted User]

Hi,

I got £515.17 gross, £412.13 net, remembering that it was a leap year, so 366 days and extra day Feb, though wouldn't make £30ish of a difference.

Now I wonder if deposit on 06/06/12 was taken as a late/missed payment and only paid you 0.10%, so instead of getting £37.89 you only got 76p, so making a difference of £37, give or take a few pennies, which is just about what Santander underpaid.

premierfella

I would be with frugalmacdugal.

The only problem with that theory (if I understand the account correctly) is that if the 6/6/12 payment was not taken for the MAY/JUN month but instead for the JUN/JUL month (i.e. interest in MAY/JUN was at 0.1%), it doesn't explain why they didn't apply the same 0.1% for JUN/JUL (as credits for that monthly period would then have been £400, taking them above the £300 mark).

If this account had similar terms in that respect as the other Regular Savers did, that should have triggered a 0.1% rate for JUN/JUL as well (so if this is the reason for the underpayment, it seems reasonable grounds to complain - Santander surely wouldn't be able to claim on the one hand that the £100 was credited late but on the other hand not late enough to fall into the next monthly period!)

Consumerist

Extracted from my spreadsheet, if it helps.

                        Gross       Notional
Date      Deposits     Interest     Balance
--------------------------------------------
07/10/11                             8866.24
31/10/11                28.49        8894.73
02/11/11   300.00
30/11/11                36.87        9231.60
02/12/11   300.00
31/12/11                39.50        9571.09
03/01/12   300.00
31/01/12                40.87        9911.96
02/02/12   300.00
29/02/12                39.58       10251.54
02/03/12   300.00
31/03/12                43.73       10595.28
02/04/12   100.00
30/04/12                42.95       10738.23
05/05/12   100.00
31/05/12                44.94       10883.17
06/06/12   100.00
30/06/12                44.05       11027.22
02/07/12   300.00
31/07/12                46.95       11374.17
02/08/12   300.00
31/08/12                48.40       11722.57
03/09/12   300.00
30/09/12                48.19       12070.76
02/10/12   300.00
07/10/12                11.50       12382.26
                       ------
Total                  516.02 (gross)

2012 was a leap year but interest has been calculated on the basis of a 365-day year. Should be close enough for practical purposes. Assumes notional interest added on last day of each month.

rb10

Just to finish off this thread, in case someone comes across it whilst Googling and wants to know how it ended up ...

I asked in a branch about the missing interest. The guy didn't have a clue how interest is calculated, but sent off a 'Request' for it to be recalculated.

Within 48 hours, an 'Interest Adjustment' was showing on my account, for the missing amount.

Top marks to Santander! They sorted it out, simply, correctly and without hassle. (Although it would have been preferable to get it right first time!)