Lloyds 2 year RS

gzed

My 2 year regular saver just finished.

I'm quiet disappointed at the interest I have received. I open the account with £500 and made the £250 monthly deposit.

After the first year I received £133 net which is close from my calculation of £138. However after the second year I only get £335.03. I was expected something around the £450-466 mark.

Do you think the fact that I cancel teh S/O a week after the final payment could affect this?

exel1966

gzed wrote: »

My 2 year regular saver just finished.

I'm quiet disappointed at the interest I have received. I open the account with £500 and made the £250 monthly deposit.

After the first year I received £133 net which is close from my calculation of £138. However after the second year I only get £335.03. I was expected something around the £450-466 mark.

Do you think the fact that I cancel teh S/O a week after the final payment could affect this?

Cancelling the S/O has no bearing whatsoever. The MAX you could have earnt in the 2nd year would be around £356 approx so your only £21 short of that, probably because you didn't deposit early in the month and because you didn't have £750 deposited in the opening month.
Can't see where you get £450 - £466 from ?

YorkshireBoy

exel1966 wrote: »

Can't see where you get £450 - £466 from ?

Looks like 'gzed' forgot to take the tax off his 'expected' figure (which was perhaps high to start with)?

gzed

YorkshireBoy wrote: »

Looks like 'gzed' forgot to take the tax off his 'expected' figure (which was perhaps high to start with)?

I used 6.4% net (8% minus 20% tax), is this correct?

I'll just have to check my calculation then, which must be wrong somewhere..

YorkshireBoy

The maximum you can start the 2nd year with is £3,750 (if you deposit £750 in the first month as exel says).

6.4% is correct, but you're not taxed until it's paid.

So, each day in year 2 you earn interest as follows...

balance x 8% / 365

You sum up all 365 days worth of interest and then deduct your 20% tax to get your return.

Do you know where you've gone wrong now?

gzed

If I calculate using the average amount in the account over 12 months, I get the amount expected and received from LLoyds (around £330, in agreement with everyone else).

The error is when I try to calculate month by month. I can't see the mistake.

Nevermind I just wanted to check that LLoyds gave me all my interests due, which they have.