Barclays Tax Beater ISA - weird interest payments

OGM

Just checked my balance and the latest interest payment has come through, but it is less than I expected. I've tried all sorts of ways and I really have no idea how they are calculating this. Here goes:

Like many people I had problems initially opening, so the first interest payment was not till 01/06/07, that was £29.56 on an initial £3000. From then on:

02/07/2007: £16.88
01/08/2007: £16.42
03/09/2007: £18.86
01/10/2007: £16.10

Now, shouldn't the interest pretty much be going up each month? Especially since there were rate rises. So why is this month much lower than last month?

mary

Just checked mione and if it's any consolation. I have identical figures:

29.56 1st June
16.88 2nd July
16.42 1st Aug
18.86 3rd Sept
16.10 1st Oct

capehorn

OGM wrote: »

Just checked my balance and the latest interest payment has come through, but it is less than I expected. I've tried all sorts of ways and I really have no idea how they are calculating this. Here goes:

Like many people I had problems initially opening, so the first interest payment was not till 01/06/07, that was £29.56 on an initial £3000. From then on:

02/07/2007: £16.88
01/08/2007: £16.42
03/09/2007: £18.86
01/10/2007: £16.10

Now, shouldn't the interest pretty much be going up each month? Especially since there were rate rises. So why is this month much lower than last month?

02/07 to 01/08 = 30 days
01/08 to 03/09 = 32 days
03/09 to 01/10 = 29 days

That might explain the fluctuations if interest is calculated daily

OGM

Even with that, daily interest works out higher for the £18.86 payment, seems to me the daily interest should always be going up thanks to compounding..

Thomas_Crown

Am I correct to presume that everyone who has posted about the amounts of interest paid on their Barclays Tax Beater ISA is registered to access their accounts online?

I have just checked the Barclays website & it requests details of current account & switch/solo card. I do not have a Barclays current account so I must presume that I am ineligible to register my ISA for online access. I wonder when Barclays will inform me of interest paid? Probably the end of the tax year.

bristolleedsfan

Thomas_Crown wrote: »

I I wonder when Barclays will inform me of interest paid? Probably the end of the tax year.

statements are sent out every 6 months by memory, most other providers send statememts out once a year.

hereford_2

bristolleedsfan wrote: »

statements are sent out every 6 months by memory, most other providers send statememts out once a year.

I opened my account on the 30th March and just got my 6 monthly statement today.

hereford_2

capehorn wrote: »

02/07 to 01/08 = 30 days
01/08 to 03/09 = 32 days
03/09 to 01/10 = 29 days

That might explain the fluctuations if interest is calculated daily

I think you guys may have the number of days slightly out. I could be wrong of course.


According to my paper statement interest was paid on the following dates
and for the periods shown. I've added the number of days as I see it.


Paid Period days

1/05/07 2/04 - 30/04 29 days
1/06/07 1/05 - 31/05 31 days
2/07/07 1/06 - 01/07 31 days
1/08/07 2/07 - 31/07 30 days
3/09/07 1/08 - 02/09 33 days
1/10/07 3/09 - 30/09 28 days



2nd July £16.88 = 31 days or 0.54451612903225806451612903225806 per day
1st Aug £16.42 = 30 days or 0.54733333333333333333333333333333 per day
3rd Sep £18.86 = 33 days or 0.57151515151515151515151515151515 per day
1st Oct £16.10 = 28 days or 0.575 per day


Rate increases slightly every month due to compounding I guess. Is the jump aug to sep an interest rate rise?

venice04

If I put in £3,000 as a lump sum in April 2008, would I accrue the same amount of interest as if I had been putting in regular monthly payments throughout the financial year?
Sorry, don't want to sound stupid, am just getting to grips with savings & investments!

ukdutypaid

venice04 wrote: »

If I put in £3,000 as a lump sum in April 2008, would I accrue the same amount of interest as if I had been putting in regular monthly payments throughout the financial year?
Sorry, don't want to sound stupid, am just getting to grips with savings & investments!

This is for a specific account. We don't know if it will be available fron April 08, whereby the limit increases to 3,600...
And no the interest would not be the same in the two scenarios, you indicate.

Think about it, a bit longer..... 250 per month vs 3,000 from day one......, or the last day, as you seem to be indicating.
What do they teach people in school these days.... It's not "getting to grips with savings". Never mind investments!! It's getting to grips with basic maths, that's your issue there.
Granted as for working the actual amounts out..... Excel and a bit of trial and error. It ain't rocket science.

missyg_3

I have the same amounts for interest payments too.

Just as an observation, in my other Barclays ISA (pre tax beater ISA) they've always paid the interest annually.

Must admit I've never double checked that the interest payments are what they should be.