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Aidanmc

Cynergy rates must be due a rise soon

pecunianonolet

cwep2 said:

pecunianonolet said:

Zopa_Trooper said:

Kroo current account up to 4.1% from 1st July.

Interesting, they claim 4.1% AER and 4.03% Gross. The Skipton tracker issue 3 claims also 4.1% AER but 4.02% Gross. Both pay monthly interest. 

Based on this calculator the rate should be either be 4.03% Gross/4.11% AER or 4.02% Gross/ 4.09 AER

With 80k over 30 days it makes a difference of 0.34 pence and across a couple of million in their portfolios....

Both can be correct.

Often the banks will calculate and pay rates with one "round" rate (where everything after 2 decimal places is a 0) and the other rate may be rounded (where the bits after 2 decimal places are not zero). All rates are reported to 2 decimal places.

e.g. If they wanted to pay *exactly* 4.1000% AER then the monthly rate would be 4.0249% (to 4 decimal places) which rounds down to 4.02% to 2 decimal places. So they may pay 4.0249% monthly which is reported as 4.02% monthly (because 4.03% is not correct and fraudulent) but this still equates to 4.10% AER.
If they calculate/pay all their rates based on a 2 decimal place interest rate than 4.0200% would equate to 4.0949% AER which would have to be rounded to 4.09% when reported to the standard 2 decimal places.

So in this case Skipton is paying more than 4.0200% (but not >=4.0250%) but when they round it to 2 decimal places it is 4.02%.

Interesting that in case of 4.0249 they just ignore the last bit. 9 rounds up so 4 rounds to 5, and 5 rounds up so 4.03 but maybe just wishful thinking and effects are minimal anyhow. I have by far not enough cash in accounts that it would actually give me sleepless nights 

oz0707

Aidanmc said:

Cynergy rates must be due a rise soon

cue convoluted closure and opening of new account!

soulsaver

Al Rayan reports 'Scheduled maintenance for 210 mins from 22.00..' tonight?

jaceyboy

The money flying around the banking system right now must be interesting 

UncleK

Aidanmc said:

Cynergy rates must be due a rise soon

Highly likely, given I just moved a chunk out elsewhere as their rates were lagging behind 

Zaul22

Silly Monzo, surely they should at least match Chase as their most direct competition. 

oz0707

UncleK said:

Aidanmc said:

Cynergy rates must be due a rise soon

Highly likely, given I just moved a chunk out elsewhere as their rates were lagging behind 

I've taken to calculating the difference before I bother now. Mostly I let the dust settle a bit then make sure I spread over  selection of the best

MrFrugalFever

Kroo has re-evaluated its rate from 1st July and it will now be 4.10% AER.

Zerforax

Will give it a few days since I don't think the banks expected a 0.5% increase. I get the feeling Investec won't increase the rate so then I'll move away from the 3.75% and look for something which is at least 4%.