First Direct Reg Saver error

soulsaver

I couldn't find this reported before... in a thousand hits on 'First Direct'
Not a big deal, but others may want to check.

My RS matured the other day, got the statement (post).
£100 interest from max £300 pm deposit.

It should be a little more than that?

I check the statement & notice there is one payment missed last year. Clearly, I hadn't noticed it on line.

So I phone them, '..ah yes', she says after checking with the pimply lad in the back office, 'there has been a few issues round that date. It's First Direct, n'owt you've done.. we'll credit you the interest..'

Nice I thought, I didn't put the money in but I still get the interest.. ta muchly.

As I said, not a big deal, for me its about £16... (& that'll be near the c. max for one payment missed) but you might want to check JIC it slipped under your spidey radar...

Jo_Blogs

Thanks for the info

Pincher

This is the year of paying gross interest.

Just call me paranoid, because I am always worried about these borderline cases. What if you had £999 of tax free interest, but the extra £5 mean you now have £1,004, so £4 of it is taxable. You can't bothered, but the HMRC fines you on a technicality.

The really silly scenario is, you arranged thing just fine, so you are just under higher rate tax, and then some trivial amount tips you over. Suddenly, the £1,000 Personal Savings Allowance becomes £500, so you pay 40% on £500.

Stuff of nightmares.

ColdIron

If you know things are close you probably shouldn't run them right up to the bleeding edge. Bung another few hundred quid into your pension?

bobobski

So £106 total interest? That's not right. Mine matured today and my interest was £117.02 (quick maths had told me to expect £117-odd). Why's yours £11 out after "correction"?

soulsaver

bobobski wrote: »

So £106 total interest? That's not right. Mine matured today and my interest was £117.02 (quick maths had told me to expect £117-odd). Why's yours £11 out after "correction"?

As it happens typo: should be c.£16 - I haven't seen the correction yet - the conversation was Friday. I've edited OP.

But if it wasn't the first payment the missing interest depends on when exactly the deposit was missed.

fabsaver

Looks like they may have been double checking their figures and found another error. I received an email out of the blue yesterday stating:

We’ve now discovered that the letter we sent confirming your account was open incorrectly said the amount of interest earned could be approximately £117 instead of £97. We’re really sorry for getting this wrong – we hope we haven’t messed up your figures.

Clearly they hadn't updated their standard letters when the rate was reduced from 6% to 5%.

soulsaver

£16.65 correction credited late on the Monday following my call on Friday.