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dgpur

JimLad said:

Any chance of CHIP raising again do you think? I literally just moved to them from tandem   

Why did you do that? Tandem pay more than Chip.

pecunianonolet

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....

AmityNeon

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....

The actual rate used to calculate interest depends on the provider. Gross rate to two decimal places is only for advertising/display purposes according to industry standard.

cwep2

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%.

JimLad

dgpur said:

JimLad said:

Any chance of CHIP raising again do you think? I literally just moved to them from tandem   

Why did you do that? Tandem pay more than Chip.

Well, when i saw literally just...it was a few days ago now.

allegro120

JimLad said:

Any chance of CHIP raising again do you think? I literally just moved to them from tandem   

There is always a chance that they will.  I nearly moved Gatehouse to Chip, but Tandem quickly offered 4.1% so money went to Tandem instead.

dgpur

JimLad said:

dgpur said:

JimLad said:

Any chance of CHIP raising again do you think? I literally just moved to them from tandem   

Why did you do that? Tandem pay more than Chip.

Well, when i saw literally just...it was a few days ago now.

Ah. Bit fast paced at times, this interest rate thing.

ForumUser7

Not TOTP, but Monzo own brand pot to 3.70%

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