West Bromwich BS 8% Regular Saver (Magic 8)

johnoz

Worth checking, Mary. Closed my account this morning in branch, and received two sets of interest, the "standard" at 281.71, plus the "bonus" of £149.46.

First figure very similar to yours, so it sounds like they haven't added the bonus yet, probably because of the payment problem you mention - may have to be done manually. Worth chasing them!

Milarky

Interest rates used by Bromwich Magic 8 (standard rate)

From opening - 9 Dec 2007: 8.10% (5.50%)
10 Dec 2007 - 10 Feb 2008: 7.85% (5.25%)
11 Feb 2008 - 13 Apr 2008: 7.60% (5.00%)
14 Apr 2008 - to date 7.35% (4.75%)

Interest was capitalised (and taxed) at the standard rate on 1 Apr 2008 - a change of the orignal account terms. The bonus is payable at the anniversary but does not include the standard rate interest - which is payable either monthly (on request) or annual each 31 March/1st April - or sooner if account is closed (Another change of terms since the accounts were opened. Interest was payable annually on 30 November previously)

Milarky

@mary

Assuming £1000 was paid (and received) on the following dates:

30/09/07
03/10/07
03/11/07
03/12/07

03/01/08
03/02/08

03/03/08
03/04/08

03/05/08
03/06/08
03/07/08
03/08/08

Then the interest received on 1 April should be £114.69 gross, £91.75 after BR tax
The anniversary 'bonus' should be £199.22, £159.37 after BR tax.
The unpaid standard interest (from 1 April to 29 Sept) would be £260.08 gross, £208.06 after BR tax.

(this is for a 'non defaulting' account)

Agree with the West Brom estimate for interest in November of £100.46 [£12287 x 4.75% x (63/365) ] however. The fact that they have paid you on anniversary (29 Sept) suggests they have substituted the standard rate between 1 April and 29 Sept for a bonus based on a full 12 months

i.e. '91.75' paid 1 April + '208.06' paid 29 Sept = '299.81' .. in reasonably closed agreement with the amount you recieved. If the following dates for recipts were used (i.e. 'later' in the month) the agreement is precise

30/09/07
11/10/07
11/11/07
10/12/07

11/01/08
11/02/08

11/03/08

11/04/08
11/05/08
11/06/08
10/06/08
10/07/08
10/08/08

mary

Had a phone call from the Supervisor yesterday with cheque in his hand ready to post.

Cheque for £12,542.08 - more than I expected!

Also enclosed Certificate of Deduction of Tax for 08/09
Gross: £562.86 Tax £112.58 and Net £450.28

I did not ask for a Certificate of Decution of Tax for 07/08 as I was not
aware that interest would be paid on April 1st. So by deduction,
net interest for 07/08 was £91.80. (Obviously the cheque was for
the whole amount due to me). In any case I have already settled
my Tax Return for 07/08.

Incidentally all payments went out at the beginning of each month as stated
in Milarky's post above. The only problem was my one payment for November
arrived a day early i.e. on October 31st (a quirk of HBOS) but as I rang and reported it, my interest had to be adjusted manually.

Dagobert

mary wrote:

The only problem was my one payment for November
arrived a day early i.e. on October 31st (a quirk of HBOS)

It was not an HBOS but a WestBrom quirk, see #72. Both my Egg and my Citibank payment went in a day early. As the BACS clearing cycle takes 2 days, I can only assume that WB's post-processing program allocated it to the BS accounts a working day early.

Milarky

Fortunately it appears as though WB have taken note of the early contact from mary about the issue and allowed her to continue paying in for the bonus - which is very decent of them. Obviously if they'd said 'no' back in the second or third month she would be minded to close the account and take a small 'hit'. I had something similar occur with Ipswich regular saver - where the terms allowed only a single monthly deposit and I put in two (to the same total) one month before I realised. I called them up and they noted on the account to except me from that rule ('this once')

p1an0player

went into a branch yesterday to move the cash into a Stratus account

they said I couldn't do it without having a "review" which I'd have to come back another day for

I said OK then I'll just withdraw it. They then relented and said they could do a "product switch" as an exception

hope this helps someone

10_66

Date……………… Tax……………Paid In…………………..Balance
12 Oct 07…………………………….1000.00…………………….1000.00
5 Nov 07……………………………..1000.00…………………….2000.00
5 Dec 07………………………… ……1000.00…………………….3000.00
9 Jan 08……………………………….1000.00…………………….4000.00
4 Feb 08…………………………………..20.00…………………….4020.00
6 Mar 08…………………………………..20.00…………………….4040.00
1 Apr 08…………-14.67………..73.37…………………….4098.70 Interest
2 Apr 08…………………………………..20.00…………………….4118.70
2 May 08……………………………… ….20.00…………………….4138.70
28 May 08……………………………..500.00…………………….4638.70
4 Jun 08…………………………… ……110.00…………………….4748.70
6 Jun 08…………………………… ……820.00…………………….5568.70
3 Jul 08…………………………… ………20.00…………………….5588.70
5 Aug 08…………………………… …….20.00…………………….5608.70
3 Sep 08…………………………… …….20.00…………………….5628.70

Passbook and letter delivered to branch 13 October. Despite including a covering letter requesting that my Magic 8 account should NOT be closed and transferred to my Stratus account BEFORE the interest and bonus was added, the little dears went ahead and did exactly what I’d told them not to. The amount transferred into my Stratus account was only £4 more than the balance after the final SO was paid in on 3 September. On ringing their HO their Administration Dept said the figure should have been £5719.01 nett, including the bonus (of which they couldn’t give me a breakdown). Can any of you kind souls have a quick scan of the above and tell me if you think their revised figure is correct? I’ve checked it myself and can’t agree their figures, but am not too sure how the bonus is paid, so can’t be sure that I’m working it out correctly. Many thanks.

p1an0player

If you opened the account on 12 Oct 07 you need to have kept the account open until 11 Oct 07

Normal interest is added on 1 April and the bonus interest on the anniversary of opening.

So on your account I'd expect to see interest on 1 Apr 2008, bonus interest on 12 Oct 2008, and further normal interest on 1 April 2009 or upon closure

10_66

p1an0player wrote: »

If you opened the account on 12 Oct 07 you need to have kept the account open until 11 Oct 07

Normal interest is added on 1 April and the bonus interest on the anniversary of opening.

So on your account I'd expect to see interest on 1 Apr 2008, bonus interest on 12 Oct 2008, and further normal interest on 1 April 2009 or upon closure

Passbook and letter delivered to them on 13 October, but told them not to action anything immediately (although it had past the anniversary of the account), as I know it takes a day or two for the interest and bonus to be added.