Can anyone help me work out if my TSB Classic Plus interest is right?

DMG33

Hi can this be done with the standard tsb account and current account plus ie £2000 in plus £500 in standard switching the £500 to and from current to plus monthly.

Jsscmm

DMG33 wrote: »

Hi can this be done with the standard tsb account and current account plus ie £2000 in plus £500 in standard switching the £500 to and from current to plus monthly.

Yes. That would generate interest on the plus account, assuming you have also selected paperless correspondence and statements and have signed up to online banking.

purplestar133

mgdavid wrote: »

that's because some months have different numbers of days in them and the weekends fall on different dates. Interest is calculated daily. Have you read and understood the Ts & Cs you signed up to when you opened the account?



thant's not going to help

colsten wrote: »

that is amongst the worst pieces of advice I have ever read on this board. T&Cs are quite simple to understand these days, and everybody should make an effort to know what they are signing for instead of just walking in with a blindfold. Nobody on this forum or this website is governing the relationship between an account holder and the bank. T&Cs do.

and this comment helps the OP? In what way?

OP, may be you find it easier to work with the daily interest rate for your TSB Plus, which you calculate as follows. The calculation assumes you have £2,000 in the account at the end of each day, every day of the month.

£2,000 x 4.89% / 365 x 0.8 = 21p (27p before tax)

Then simply multiply the daily amount with the number of days since your last interest payment. It is usually just the number of days in the month prior to the date you get the interest paid. It's as simple as that. You might get a penny's difference here and there due to rounding errors but that doesn't really matter.

If your balance varies below £2,000, the calculation gets more extensive but I don't think you do so I'll not confuse matters by going into detail.

Thanks for all the replies. I have read the T&Cs. I always do, without fail. I am also aware that different months have different numbers of days in them - that's what I meant by every month is different.


Like I said, I know the calculation to work out the interest but I am clearly doing something wrong with the numbers somewhere as they don't match what I get. Either that or I'm getting the wrong interest rate, which is why I posted on here for help.


Doh, I should have realised that if the balance goes over £2000, ie because I leave the interest in for a few days before taking it out, I shouldn't include that in the calculation, as I don't earn interest on balances above £2000.


I'm going to have a look at this again tonight and see if I can get my calculations to match the interest, using the advice you have given.

purplestar133

Trentenders wrote: »

2) If someone isn't good with maths and asks a question, try to not to be a knob about it.

colsten wrote: »

and this comment helps the OP? In what way?

It might not answer my original question but it does make me feel better after being spoken down to. The people on these forums are mostly great, extremely helpful and selfless in offering that help. I suppose it is like having a conversation with a person. Sometimes the way a friend might word something in a colloquial manner helps you to grasp how something works better than the T&Cs do.


Too often though, I have asked questions on the forum and been shot down by people who clearly like to belittle. If the answer is to be found in the T&Cs then, fair enough, ask me to read them. In this case, I have read the T&Cs and have said I am struggling with the calculation, so need more help. If you don't want to help, you don't have to. You also don't have to be unkind.

mgdavid

purplestar133 wrote: »

It might not answer my original question but it does make me feel better after being spoken down to. The people on these forums are mostly great, extremely helpful and selfless in offering that help. I suppose it is like having a conversation with a person. Sometimes the way a friend might word something in a colloquial manner helps you to grasp how something works better than the T&Cs do.

Too often though, I have asked questions on the forum and been shot down by people who clearly like to belittle. If the answer is to be found in the T&Cs then, fair enough, ask me to read them. In this case, I have read the T&Cs and have said I am struggling with the calculation, so need more help. If you don't want to help, you don't have to. You also don't have to be unkind.

I find it rather odd that someone needing help understanding the Ts & Cs, and asking for help in working out a formula (apparently provided in another thread) is actually querying the interest calculation made by an institution's IT system. Given that the apparent variations you are querying are pennies not pounds I think it's best to say 'have a little faith' and (if it were me) maybe use the time more productively?

purplestar133

mgdavid wrote: »

I find it rather odd that someone needing help understanding the Ts & Cs, and asking for help in working out a formula (apparently provided in another thread) is actually querying the interest calculation made by an institution's IT system. Given that the apparent variations you are querying are pennies not pounds I think it's best to say 'have a little faith' and (if it were me) maybe use the time more productively?

We all know that institutions get things wrong. This account requires you to have paperless statements and correspondence to get the 5% interest rate and, although I am set up for 'paperless' on both accounts, they wrote to me and told me I was only set up on one account. So I'm just checking they have recorded what I'm registered for correctly now, and are paying the correct rate of interest.

YorkshireBoy

purplestar133 wrote: »

I am struggling with the calculation...

I don't think you are. You've been given the formula...all you have to do is press a few buttons on a calculator! Maths isn't your problem here...you simply forgot two things:

1. You don't earn interest on anything over £2K, and

2. Interest is calculated from the 2nd working day of one month to the 1st working day of the next month.

Providing you always have at least £2K in the account, all (as in absolutely all!) you need to know is what 'n' is in the following formula...

£2,000 x 4.89% / 365 x n x 0.8

'n' is the number of days in the billing period, and will always be one of the following:

28, 29, 30, 31, 32, 33, or 34

So you need to do 7 calculations (well 6 actually because you already know what the answer is for 28...its £6.00), write down the answers, and one of them will equal the interest you've received in every one of the months you hold/have held the account (and met the T&Cs).

purplestar133

YorkshireBoy wrote: »

I don't think you are. You've been given the formula...all you have to do is press a few buttons on a calculator! Maths isn't your problem here...you simply forgot two things:

1. You don't earn interest on anything over £2K, and

2. Interest is calculated from the 2nd working day of one month to the 1st working day of the next month.

Providing you always have at least £2K in the account, all (as in absolutely all!) you need to know is what 'n' is in the following formula...

£2,000 x 4.89% / 365 x n x 0.8

'n' is the number of days in the billing period, and will always be one of the following:

28, 29, 30, 31, 32, 33, or 34

So you need to do 7 calculations (well 6 actually because you already know what the answer is for 28...its £6.00), write down the answers, and one of them will equal the interest you've received in every one of the months you hold/have held the account (and met the T&Cs).

1) Yes and 2) yes!

Thank you so much for spelling that out. That is just what I needed. It seems articulating what I need isn't my strong suit either!