icesave interest ??

home_alone

My latest interest (in today) from my icesave account has me slightly bewildered, this month (31 days) I recieved 50 pence less than last month (30 days), the bewilderment bit is I put in another £3K in and we also have the new .25% rate which starting the 18 May. Am I missing something important or is it just me.

gary

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home_alone wrote: »

My latest interest (in today) from my icesave account has me slightly bewildered, this month (31 days) I recieved 50 pence less than last month (30 days), the bewilderment bit is I put in another £3K in and we also have the new .25% rate which starting the 18 May. Am I missing something important or is it just me.

gary

Just out of intrest how much you got in your account and how much intrest you should get?. Thanks.

home_alone

Al_Mac wrote: »

If you got it today, it isn't a calender month.

So it is 30 days 29th April to 29th May and 31 days 29th March to 29th April.

As for not getting more with an extra £3k, I'm confused, when did it get credited?

The 3K went in on the 2nd May. I have been in touch with icesave and they can not understand it either its being passed to one of their experts (2 weeks to sort) Its the rate increase from the 18th that is confusing them as well.

gary

rebeccaj

I agree with Al Mac, this month's interest period in days is less than last month's interest period so you should have got less interest on the amount of money (if it was the same amount)

31 days interest for 29th March to 29th April and then 30 days interest for 29th April to 29th May. I think you've got the amount of days transposed.

masonic

No, I think I'd have to agree with the OP. April interest (31 days at 5.56% gross) is 0.472%, May interest (19 days at 5.56% gross, 11 days at 5.79% gross) is 0.464%. May interest should therefore be less by 0.008% IF the balance was the same. But, the balance was £3000 more for 26 of the 30 days in the May interest period. So May interest is boosted by £12,
from "0.464% X" to "0.464% X + £12" (where X is the account balance).

So we have 0.472% X + £0.50 = 0.464% X + £12 (taking the observed 50p less interest into account)

Therefore 0.008% X = £11.50
=> X = £143,750
So it would take a balance approaching £150,000 for the loss of 1 days interest to have this effect against such an increase in balance and rate (or I've messed up my calculations ).

home_alone

masonic wrote: »

No, I think I'd have to agree with the OP. April interest (31 days at 5.56% gross) is 0.472%, May interest (19 days at 5.56% gross, 11 days at 5.79% gross) is 0.464%. May interest should therefore be less by 0.008% IF the balance was the same. But, the balance was £3000 more for 26 of the 30 days in the May interest period. So May interest is boosted by £12,
from "0.464% X" to "0.464% X + £12" (where X is the account balance).

So we have 0.472% X + £0.50 = 0.464% X + £12 (taking the observed 50p less interest into account)

Therefore 0.008% X = £11.50
=> X = £143,750
So it would take a balance approaching £150,000 for the loss of 1 days interest to have this effect against such an increase in balance and rate (or I've messed up my calculations ).

The balance is over 200K, I knew the number of days were not the problem (if there is one) just more cash going in and a rate increase at the same time I did expect more, thanks anyway. Oh for those good old ing days when the first of the month meant the 1st, must be because I turned 64 this week.

gary