Daily interest confusion... help... sorry!!

taka

Hi all! Another interest question coming up... sorry!

I am complaining about a bank that made a complete mess of changing the interest rate (and the type) of a bank account I have with them.

I would love to work out how much interest I have lost out on while I am waiting for their reply... The details are as follows...

The int rate I should be getting is... 6.17%AER, 6% Gross pa , 4.8% Net pa

To get the daily int rate as the amount in the account fluctuates I would...

0.048 (as I pay tax) /365 = daily int rate Is this correct?

This would mean I can multiply this by whatever the balance was on that day and add up all the days int they messed up and have a rough idea of what Int I should have got compared to what they actually paid me??

Is this making sense at all?? :rotfl: help me please!!!!!!!!

Thank-you!!

Taka xx

Milarky

taka wrote: »

To get the daily int rate as the amount in the account fluctuates I would...

0.048 (as I pay tax) /365 = daily int rate Is this correct?

Yes that is the correct factor to use. The 'simple' rate is 6% pa (0.5% per month, about 1/60th of 1% per day) gross when interest is paid monthly - so it only becomes '6.17' by being added to the account and compounded.

taka

Thank-you for your reply! Just wanted to double check before I spent ages calculating it all only to find I'd got it all wrong! Now I just need a reply from the bank... :rotfl:

regularsaver1

did you credit the account with over £1000 each month?

taka

regularsaver1 wrote: »

did you credit the account with over £1000 each month?

Yep I qualified for and met all the conditions of the higher interest account and filled in all the appropriate forms (twice!!)... Just a pity the bank didn't didn't bother to change it over then lied to me several times that it had been done :eek: . They also made a mess of opening another account I wanted to open at the same time... :mad: I am now a day or 2 away from the 8 week reply limit to reply to my complaint (before I go to the ombudsman if nec). Needless to say i am now in the process of moving all my accounts elsewhere :rotfl: S*d them...