first direct regular saver 8% to be withdrawn

Chargem

Apologies for the tedious maths question, but if I have an 8% regular saver and I paid in £250 per month for a year, how much gross interest would I expect?

Asking because I just had one mature and received £130.95, I should receive gross interest but this looks like tax may have been withheld, hoping someone can check my maths before I storm into the bank and complain.

(when I do a quick spreadsheet for this I get £141.67 interest expected)

ColdIron

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

Yorkie1

Chargem wrote: »

Apologies for the tedious maths question, but if I have an 8% regular saver and I paid in £250 per month for a year, how much gross interest would I expect?

Asking because I just had one mature and received £130.95, I should receive gross interest but this looks like tax may have been withheld, hoping someone can check my maths before I storm into the bank and complain.

(when I do a quick spreadsheet for this I get £141.67 interest expected)

Did you fill in the form to tell them that tax shouldn't be deducted? All bank accounts deduct tax at 20% unless you tell them otherwise.

typistretired

Gromitt wrote: »

When was that? I've had my account for 15 years now and was never offered interest on my current account.

Just checked our tax returns. The interest on First Direct current accounts ceased from 1st November 2007, about this time they changed the name from Bank Account to 1st Account.

First Direct had two current accounts one called Bank Account, which was ours which paid 1.98% and another called Cheque Account which paid 0.1%.

They merged both accounts to call it the First Account and stopped the interest at the same time.

They use to make two payments into our account each month net interest and added net interest.

Perhaps you had the cheque account which only paid 0.1%.

typistretired

meer53 wrote: »

I've banked with them for 19 years and never had interest either.

For your information too!!

Just checked our tax returns. The interest on First Direct current accounts ceased from 1st November 2007, about this time they changed the name from Bank Account to 1st Account.

First Direct had two current accounts one called Bank Account, which was ours which paid 1.98% and another called Cheque Account which paid 0.1%.

They merged both accounts to call it the First Account and stopped the interest at the same time.

They use to make two payments into our account each month net interest and added net interest.

Perhaps you had the cheque account which only paid 0.1%.

typistretired

Chargem wrote: »

Apologies for the tedious maths question, but if I have an 8% regular saver and I paid in £250 per month for a year, how much gross interest would I expect?

Asking because I just had one mature and received £130.95, I should receive gross interest but this looks like tax may have been withheld, hoping someone can check my maths before I storm into the bank and complain.

(when I do a quick spreadsheet for this I get £141.67 interest expected)

Using the first direct calculator you should have received £128.69 gross.

Using this site's calculator for Regular Savings you should have received £128.47 gross.

The extra interest is because they probably never moved your savings out of the account the day it matured.

cte1111

NB I have opened 5 of the regular savers in the past: 1 in my name, 1 in my husband's name, 1 for my Dad (for whom I had Power of Attorney), 1 for my Gran (ditto PoA), final one for my Mum (helped her to do it).

So the poster does not necessarily have to be breaking the law! We all bank with First Direct as they have been great with handling POA account access, unlike Barclays (who my Gran banked with previously).

We've also got a Santander 123 account for the cashback and interest. All legit and above board.

TallGirl

I opened mine during the week and did not get the option of the 8% regular saver acc online. When I called today to do the security I asked for one and she set it up for me. She did not say anything about it being withdrawn so I am glad I did it as I was going to wait until 1st March.

Carpi09

Opened one today! :j

Gromitt

typistretired wrote: »

Just checked our tax returns. The interest on First Direct current accounts ceased from 1st November 2007, about this time they changed the name from Bank Account to 1st Account

Looking at my records, so it did. It appears that I had the 0.1% account, going from the average balance and the interest. Probably never noticed has it was always less than 20p!