TSB Interest Changes

Goldiegirl

mrchrisbrogan wrote: »

Can anyone explain to me why the amount of TSB interest changes. The offer states 5% on balances up to 2000.00. I have a constant 2000.00 in my account but the interest fluctuates. Why would this be?

mrchrisbrogan wrote: »

Since having the account I have had the following, and I am struggling to find how this adds up:

01/10/2015 6.44
02/11/2015 6.87
01/12/2015 6.22
04/01/2016 7.29
01/02/2016 6.01

You've answered your own question.

For example, the interest paid on 4th January was higher than average, as the period between 1st December to 4th January is a longer than normal period of time.

The interest paid 1st February is lower than average as the period between 4th January and 1st Feb is a short month.

Yorkshire_Pud

Kernel_Sanders wrote: »

But you don't.


That would pay over £80 p.a. wheras the maximum payable on the account at basic rate is £78.24. They won't give you a full 5% if you keep £2000 in!

But I do.

Some people get £100 a year gross interest, i.e. a full 5% on £2,000. That would be £80 net. Not that's got anything at all to do with my answer that was intended to help the OP, I even rounded the daily interest up slightly for illustrative purposes and simplicity.

You are the Wrong Buffet of the all you can delete KFC generation.

colsten

Kernel_Sanders wrote: »

Actually it's not for many, it depends on your age.

From 6 April 2016, age does not come into the equation.

eskbanker

Yorkshire_Pud wrote: »

Some people get £100 a year gross interest, i.e. a full 5% on £2,000.

No they don't (well not from this account anyway)! The 5% AER figure is only achievable via compounding of monthly interest, but there can't be any such compounding if the account is maxed out at £2K because you can't earn interest on the interest that way.

So, if you have the maximum £2K, the maximum interest is the 4.89% gross rate, which does indeed give the £78.24 post[STRIKE]pre[/STRIKE]-tax figure KS quotes (or £97.80 gross).

YorkshireBoy

eskbanker wrote: »

So, if you have the maximum £2K, the maximum interest is the 4.89% gross rate, which does indeed give the £78.24 pre-tax figure KS quotes (or £97.80 gross).

I'll be disappointed if I don't make £78.45 (£98.07 gross) per account in the 2015/16 tax year.

Yorkshire_Pud

YorkshireBoy wrote: »

I'll be disappointed if I don't make £78.45 (£98.07 gross) per account in the 2015/16 tax year.

But that only happens in a leap year!?:);)

RandomUser923759

Happy with the april change, I won't make 1000 in interest personally so having 1000 tax free is great!