Quick TSB question

Engineer87

Got a TSB classic plus account paying 5% jobby.

Balance of at least £2000 always, £500 in 2nd of each month.

May interest: £8.58
June interest: £7.77

I juggle money between accounts but it's Always above £2000 so I wonder why the difference?

Any body else the same?

Thanks

B_G_B

Engineer87 wrote: »

Got a TSB classic plus account paying 5% jobby.

Balance of at least £2000 always, £500 in 2nd of each month.

May interest: £8.58
June interest: £7.77

I juggle money between accounts but it's Always above £2000 so I wonder why the difference?

Any body else the same?

Thanks

Interest calculated daily. Different number of days.

beecher2

I'm the same too - odd.

I wonder if we were paid too much last month? I got paid £8.57 on 1 May which would've been £6.86 before the tax changes. On 1 May 2015 I got £6.44 so something's not right, especially as changes didn't kick in until 5 April

YorkshireBoy

An interest earning month runs from the 2nd working day of one month to the first working day of the next month (both dates inclusive). All explained in the account T&Cs.

Therefore, the number of days will vary from 28 to 34, depending on weekends and Bank Holidays, and the number of days in the calendar month of course.

beecher2

I thought June normally pays slightly more than May as there's an extra day in the calculation.

B_G_B

In addition to YB’s post last month calculated over 29 days and the month before 32 days. Daily rate on £2000 is approx 26.79p.

LXdaddy

YorkshireBoy wrote: »

An interest earning month runs from the 2nd working day of one month to the first working day of the next month (both dates inclusive). All explained in the account T&Cs.

Therefore, the number of days will vary from 28 to 34, depending on weekends and Bank Holidays, and the number of days in the calendar month of course.

hmmm...
I hope not, because in July the first working day is 1-Jul and the second working day is 4-Jul so if your calculation is correct then no interest would be earned for the 2nd and 3rd of July.


I'm sure your are essentially correct and the difference is down to the number of days in the interest cycle. I can't find the details in the T&C documents I can see online.

Pincher

3rd May £8.38
1st June £7.77


Different day, due to weekend?


Alternative theory is that Zika virus is actually a computer virus as well. The bank's computer is infected, and the balance is being damaged, causing microfinanicialitus.

talexuser

I use a spreadsheet using daily interest. For May the calculation was £8.39 and the actual paid £8.57. For June the calculation was £7.60 and the actual paid £7.77. I don't worry about the pennies, it's close enough not to bother about.

YorkshireBoy

LXdaddy wrote: »

hmmm...
I hope not, because in July the first working day is 1-Jul and the second working day is 4-Jul so if your calculation is correct then no interest would be earned for the 2nd and 3rd of July.

The 2nd & 3rd are lumped in with the 4th for interest earning purposes, because interest is paid at the end of Friday night's processing run.

I'm sure your are essentially correct and the difference is down to the number of days in the interest cycle. I can't find the details in the T&C documents I can see online.

You have to read 3 sets of T&Cs to deduce it...the Plus T&Cs, the Personal Banking T&Cs (where they mention billing period), and the Charges document (where they define billing period). Lloyds, and also BoS I believe, make it a lot clearer in their similar offerings of Club & Vantage respectively. I think TSB used to be a lot clearer, up until they severed their ties with LBG.

YorkshireBoy

talexuser wrote: »

I use a spreadsheet using daily interest. For May the calculation was £8.39 and the actual paid £8.57. For June the calculation was £7.60 and the actual paid £7.77. I don't worry about the pennies, it's close enough not to bother about.

Providing you always have at least £2K in there, then I've found £2K x 4.89% / 365 x n is very accurate.

Where n = number of days in the billing period.

Obviously doesn't work if you dip below £2K at any point.