interest paid on cheque withdrawals/deposits

MarkyMarkD

bristolleedsfan wrote: »

yes some institutions may be paying better savings rates due to this gain but their are others who pay abysmal savings rates despite profiting as described above

I think that you'll find that the loss of interest you experience is directly proportional to the interest rate on the account - so institutions paying abysmal savings rates will cost you hardly anything when you transfer out via cheque.

Anyway, you never have any money with an institution paying abysmal savings rates, so how does that come into the debate?

bristolleedsfan

MarkyMarkD wrote: »

I think that you'll find that the loss of interest you experience is directly proportional to the interest rate on the account - so institutions paying abysmal savings rates will cost you hardly anything when you transfer out via cheque.

Anyway, you never have any money with an institution paying abysmal savings rates, so how does that come into the debate?

wrong on point 1 cos virtually all building societies operate the 3rd working day following day of receipt rule on interest payments on building society cheque deposits as well as those who pay abysmal savings rates

wrong on point 2 as well because from 1996 onwards i had a number of 100.00 accounts paying nominal interest ( aka 0.25% gross) and from jan 1996 until lambeth BS was finally taken over :j i had 250.00 paying about 0.10% gross per year ( they wouldnt let me drop the account to 100.00 without it being closed) lambeth BS operated the 3rd working day following receipt as well for interest on cheque deposits indeed so do portman BS on their abysmal savings accounts, i could go on perhaps as its my post u could afford me the courtesy of having last word even better perhaps we could do a deal u ignore my posts and ill ignore yours

bristolleedsfan

MarkyMarkD wrote: »

The fact that they haven't done so reveals the fact that 99% of their customers don't care.

99% of their customers have no choice bar withdraw and subsequently pay in large amounts of cash ( which still entails 1 working day loss of interest in most cases)

MarkyMarkD

bristolleedsfan wrote: »

wrong on point 1 cos virtually all building societies operate the 3rd working day following day of receipt rule on interest payments on building society cheque deposits as well as those who pay abysmal savings rates

wrong on point 2 as well because from 1996 onwards i had a number of 100.00 accounts paying nominal interest ( aka 0.25% gross) and from jan 1996 until lambeth BS was finally taken over :j i had 250.00 paying about 0.10% gross per year ( they wouldnt let me drop the account to 100.00 without it being closed) lambeth BS operated the 3rd working day following receipt as well for interest on cheque deposits indeed so do portman BS on their abysmal savings accounts, i could go on perhaps as its my post u could afford me the courtesy of having last word even better perhaps we could do a deal u ignore my posts and ill ignore yours

Point 1: not wrong. Obviously you lose 5 times as much interest withdrawing from an account paying 5% than one paying 1%, if the account won't pay your "bonus days" of interest at the account's rate.

Point 2: you aren't withdrawing money from those accounts, and if you ever need to you can take it out in cash as it's only £100.

MarkyMarkD

bristolleedsfan wrote: »

99% of their customers have no choice bar withdraw and subsequently pay in large amounts of cash ( which still entails 1 working day loss of interest in most cases)

They have a choice - transact less. Don't chase that last 0.01%.

Run that 1 day of lost interest on cash by me again? Which institution penalises you a day's interest for cash?

bristolleedsfan

MarkyMarkD wrote: »

Run that 1 day of lost interest on cash by me again? Which institution penalises you a day's interest for cash?

im not gonna bother getting involved in time consuming pointless debates all i will answer with is that most building societies dont pay interest on cash deposits until the first full day following receipt, again nationwide is NOT "proud to be different" on this point either

14."Cash paid into the account will earn interest from the first full day following receipt. Cheques paid in will earn interest from the third working day (excluding weekends and bank holidays) following the date of receipt"

interest prob isnt paid on cash withdrawals on day of withdrawal either so thats 2 days interest lost even if funds in cash are moved from one building society to another ( in same street) :rolleyes: