Less TSB interest

r2015

I normally get between £8.04 and £8.84 gross interest on my £2000 in my TSB account.


Why did I only get £7.77 this month?

Ed-1

r2015 wrote: »

I normally get between £8.04 and £8.84 gross interest on my £2000 in my TSB account.


Why did I only get £7.77 this month?

The monthly billing period started later in August. Every monthly billing period starts on the 2nd working day of the month (which was 4th August this time) and ends on the 1st working day of the next month (1st September).

4th August to 1st September is 29 days.

So you get [(2000 x 0.0489)/365] x 29 = £7.77 interest.

Simple as that - can you work out how much interest you'll get in October?

LittleVoice

Probably because the "month" for calculation of interest started on 3 August and was thus shorter than some of your other months.


I am paid TSB interest nett but calculate it from the gross amount which for this most recent payment was £7.77 just as you have been paid.


The previous month, I calculated the gross amount as £8.84 which I assume is what you were paid at that time.

GTR_King

I havant got interest for the month as paid £500 on the 1st of the month o well my fault

Ed-1

GTR_King wrote: »

I havant got interest for the month as paid £500 on the 1st of the month o well my fault

I'm interested to know if this is the reason you didn't get interest as we had a thread about this a while back.

I thought we established that TSB require you to pay in £500 every calendar month to earn interest.

You paid in £500 within the calendar month but not the monthly billing period:

Has anyone met the funding conditions in the calendar month but not within the monthly billing period and received interest?

Are you certain that you've registered for paperless statements and correspondence?

fromtheshires

Its more than I got. I only got 6.22 in each of mine this month

Ed-1

fromtheshires wrote: »

Its more than I got. I only got 6.22 in each of mine this month

That's the net amount (with 20% tax taken off). Are you a basic rate taxpayer?

Assuming £2000 in the account at midnight on every day of the monthly billing period from 4th August to 1st September, the gross amount is £7.77 and the net amount is £6.22.

fromtheshires

Ed-1 wrote: »

That's the net amount (with 20% tax taken off). Are you a basic rate taxpayer?

Assuming £2000 in the account at midnight on every day of the monthly billing period from 4th August to 1st September, the gross amount is £7.77 and the net amount is £6.22.

What a tool! I knew i was being thick.

zerog

Ed-1 wrote: »

I'm interested to know if this is the reason you didn't get interest as we had a thread about this a while back.
...

I believe the consensus (elsewhere if not on MSE) is that the system doesn't adhere to the T&Cs, but you should play by the system unless you want to fuss about making a complaint. However this could result in cash compensation worth up to 6 months' gross interest.

xylophone

http://www.tsb.co.uk/current-accounts/classic-plus-account/classic-plus-account-terms-and-conditions.pdf

It certainly says month and not accounting period - Santander, for example, is very precise about this.

It might be worth a complaint - if nothing else it should lead them to redraft the T&Cs with more precision?