Interest from Lloyds Monthly Saver less than expected

Gemini90

So I had a Club Lloyds Monthly Saver which has a rate of 2.50% gross/AER interest for 12 months (interest is paid after these 12 months). I have been depositing £250 at the beginning of every month for the past 12 months (total balance in December was £3000) therefore I was expecting to receive around £75 in interest however I have just checked the account and have been paid £40 in interest. I have not made any withdrawals from this account since opening it.

Any ideas why the interest is lower than expected?

More info on the account here https://www.lloydsbank.com/savings/club-lloyds-monthly-saver.asp

ColdIron

You have made the assumption that you will get 2.5% on the whole £3,000 yet you only had the full balance in the account for the last month and just had £250 for the first. No one will pay you interest on money not deposited. In reality your average balance was about half or £1,500 and 2.5% on that is about £40

Plug your numbers into the MSE calculator
https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/#calculator

Ken68

Because Gemini, not all of your money was in the account all of the time.

Your horoscope for today is:

The Sun's annual meeting with Pluto occurs now, dear Gemini, and it can serve to illuminate some of your deeper desires and fears. Questions of trust may push to the surface, and self-honesty is especially important now. Through events, meetings, and memories, you're learning a little bit about your attachments or dependencies, and if you're not in touch with some of your deeper feelings triggered today, there can be considerable tension. This aspect can alternatively work on a different level, producing a wonderful atmosphere for intense study or focus and concentration. You may benefit greatly from doing some in-depth research or digging. It might also stimulate an important epiphany about a relationship or your inner motivations with its alignment in your intimacy sector.

HappyHarry

Gemini90 wrote: »

So I had a Club Lloyds Monthly Saver which has a rate of 2.50% gross/AER interest for 12 months (interest is paid after these 12 months). I have been depositing £250 at the beginning of every month for the past 12 months (total balance in December was £3000) therefore I was expecting to receive around £75 in interest however I have just checked the account and have been paid £40 in interest. I have not made any withdrawals from this account since opening it.

Any ideas why the interest is lower than expected?

More info on the account here https://www.lloydsbank.com/savings/club-lloyds-monthly-saver.asp

£75 is 2.50% interest on £3,000. However, you haven't had £3,000 in the account for the year. In fact, for half of the year, you had less than £1,500 in the account.

The interest you received is accurate, based on the amount of funds in your account and the length of time it has been there.

quirkydeptless

See the "Don't believe the bad press" section on this page...:money:



https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/#calculator


" Mr Matt Mattics and his £3,000 savings
Matt has saved a total of £3,000 in a regular savings account paying 10% interest over a year.
What Matt expects to earn? His simple sum works out that he's put £3,000 in at 10% therefore he should earn £300 in interest
Why is this wrong? Matt only had £3,000 in there for the last month; it took a year to build up to that amount. You only earn interest on money in the account. So after the first month he was earning the 10% on just £250, half way through the year he was earning it on £1,500.
How Matt should work it out? Over the year, his average balance was roughly half the £3,000, in other words £1,500... so Matt should expect to earn around 10% of £1,500 over the year, which is £150.



"

Gemini90

Thanks all. Makes perfect sense now.