Santander Esaver5

bigfreddiel

i've got an esaver 5 - i renamed the account with the expiry date -so it reads esaver5-23-jun-13

simples


fj

[Deleted User]

Hi,

typistretired wrote: »

Working on the fact I receive my interest on the 19th of the month (today) and February was 28 days only. How much interest net should be paid for each £1,000. I know the net interest rate per month is 2.52% (3.15%-0.63%) but don't how they work out their calculations.

I think that'll be 2.52% per year, so for £1000, for a month you will get £2.10p, yes. not a lot.

typistretired

[Deleted User] wrote:

Hi,



I think that'll be 2.52% per year, so for £1000, for a month you will get £2.10p, yes. not a lot.

No 2.52% net is what you get when you take monthly interest.

The annual interest is 2.55% (3.20%-0.60%)

I know they work it out daily when you get your interest paid monthly but wanted to know what formula is used. This month only 28 days interest was paid. Other months you would get either 30 or 31 days.

[Deleted User]

Hi,

the annual interest will be 3.20% minus 20% tax (0.64%) so 2.56%

So £1000 will get just over 0.07p per day, so interest for February (28 days) £1.96.

£1000 x 2.56% = £25.60, divide by 365 = 0.0701369 multiply by 28 = £1.9638.

YorkshireBoy

typistretired wrote: »

I know they work it out daily when you get your interest paid monthly

They always work it out daily, whether it's paid annually or monthly.

but wanted to know what formula is used.

Interest is always calculated each day as:

Closing balance x gross p.a. interest rate / 365

So for a static £1K balance throughout the monthly period spanning Feb/Mar the interest accrued and paid in March would be:

£1,000 x 3.15% / 365 x 28 x 0.8 = £1.93

Where 0.8 is the tax multiplier

If you have a fluctuating balance throughout the month you'll need to do 28/29/30/31 separate calculations on the gross amount, sum them up, and then multiply by 0.8

This month only 28 days interest was paid. Other months you would get either 30 or 31 days.

That's because interest is always paid on anniversary of account opening, so the same date next month for monthly paid interest, and the same date next year for annually paid interest.

typistretired

Received a letter in the post to say the account includes a bonus, which will end shortly. Panic set in. Then in the next sentence it said from 18 June 2013, you will receive the new interest rates detailed in the table below. (From 3.15% to 0.50%)

My definition of shortly is not 3 months away!!!

exel1966

typistretired wrote: »

Received a letter in the post to say the account includes a bonus, which will end shortly. Panic set in. Then in the next sentence it said from 18 June 2013, you will receive the new interest rates detailed in the table below. (From 3.15% to 0.50%)

My definition of shortly is not 3 months away!!!

I'd be thanking them, not knocking it !

3 months notification gives you ample notification to do something about it.

Well done Santander !

innovate

typistretired wrote: »

Panic set in.

Why are you panicking about something that you (should) have known for the last 9 months? All the letter is is a timely reminder that you should perhaps think of doing something with your money soon. Although that's not the words they chose, lol.

exel1966

Strangely enough, the post has just arrived (yes at 1320) and with it a welcome letter from Santander about my E5 changing on the 9th June.

Now, a call about my DD complaint and an increase in goodwill from £85 to £150 would be even nicer

typistretired

I panicked when I quickly looked at the letter because I thought they were reducing the rate earlier like other banks and building societies have done.

I am already prepared opened a few accounts with rates over 2% with £1 ready for when I need to move my savings.