Lloyds interest calculation.........

ed123_2

I have the above account paying 4% on balances of £5-6k and had £5k for 9 days only of April 2013 which paid interest of £2.54. Now I calculate it being around £3.88 with the lower amount being nearer a 3% interest rate. Do you need to have the £5k in the account for every day of the month in order to get the 4% rate?......thanks ed

G_M

No.

Interest is calculated daily.

Have you factored in tax?

Hominu

Do you still have 2*DDs? Else the account reverts to 3% on 5K.

matttye

4*0.8 = 3.2% after tax.

I still get £3.95:

5000*0.032/365*9

oldfella

my guess is you got 3% for 8 days less tax

maybe you need to have 5001 to get 4% ?

the interest month started 1 day late in April because of Easter, was your deposit period the first 9 days ?

YorkshireBoy

At 3% AER...

£5,000 x 2.96% / 365 x 9 x 0.8 = £2.92


At 4% AER...

£5,000 x 3.93% / 365 x 9 x 0.8 = £3.88

You should have had one or the other of the above, so I'm not sure how they arrived at £2.54. You're probably going to have to ask them for an explanation.

YorkshireBoy

oldfella wrote: »

my guess is you got 3% for 8 days less tax

Already run that through a calculator and it doesn't work out (comes in at £2.59).