reclaim-packaged-bank-accounts

InViiEn

Hi.
I want to refer to the information on your site, (By Sally | Edited by Dan, updated; May, 2015), related to the 'Packaged bank account reclaim' and 'How is the interest calculated?'.
I wish to reclaim money for the mis-sold packaged account, and want to understand how the compounded interest gets calculated. Trying to follow the explained, I can not get the same figure (£108.64 for the year two), and it seemed to me as there is an error.

Year one; £100+8%=£108.00
Year two; £108.00+(8% of £100.00)+(8% of 8% of £100.00)=£116.64
Year three; £116.64+(8% of £108.00)+(8% of 8% of £100.00)+(8% of 8% of 8% of £100.00)=£125.97
Please correct me if my understanding is wrong.

My initial calculations must to be done over the 7years,10 months. As it started from October and the rate has been changed twice, the annual summary came up different.

Q.1; How should I have calculated the compounded interest on the each year increasing sum?
Q.2; Is there any chance the bank can be willing to be fair in regards refunding the compounded interest, or should I be 'happy' with the flat 8% from each year?
Q.3; Should I mention my wish for the compounded interest refund in my reclaim?

Thank you

McKneff

You don't reclaim, you make a complaint.


What makes you think that you were miss sold, then

InViiEn

Thank you for responding.
But I afraid, if we are going to talk about the nature of my packaged bank account, the point of my thread will be somewhat other. I would be happy to learn to understand the compounded interest, specifically, over the years where annual sums are different.
Regards

InViiEn

Besides, the term "reclaim-packaged-bank-accounts" was taken from the MSE site, I am just following.

pogofish

Has MSE added banking to its multitudinous talents now?

If not, how about getting this into an appropriate forum!

InViiEn

Dear pogofish, if I would find a possibility to address my question directly to Sally, I obviously would prefer to do so. Also, I did not expect to receive a sarcastic remark for a mistake making, especially, from someone who managed to earn nearly 4,360 'Thanks'. I afraid, just now, the one have to remain short.
Nevertheless, thanks for nothing!

dunstonh

Its 8% simple not 8% compound.

If your complaint is successful, they will tell you the figures and show the breakdown. There is no requirement for you do to any calculation or make any reference to interest in your complaint.