TSB Monthly Saver interest correct?

ColdIron

Where does it say it must be a maximum of 12 payments? Their examples and illustrations use 12 but that's not the same thing. I've been making 13 payments for years until they dropped the rate to 2%. Same with all the other accounts that work on a calender month

No_Name

eskbanker wrote: »

Your calculation, it would appear!

As my earlier quote from their website highlights, not only do they assume payments on the 25th but for an account opened on the 1st, so there is an initial 24-day period where the account is empty. As the account is open for a year starting from the opening date, the interest in TSB's scenario is only earned over the remaining 341 days and so can't be equal to that from an account that's funded optimally for the whole year....

I'm beginning to think it may be my calculation, but I've assumed the start of the fixed period of 365/366 days to be 25th of the month, with incremental increases of £250 on 25th of each month. I still get £32.50.


Of course I understand your point on opening on 1st but not funded until 25th, but are there many who do that and does that form the basis of TSB's calculation?

eskbanker

No_Name wrote: »

I'm beginning to think it may be my calculation, but I've assumed the start of the fixed period of 365/366 days to be 25th of the month, with incremental increases of £250 on 25th of each month. I still get £32.50.

That seems to be a reasonably accurate calculation, but as it's clearly using different assumptions and data from what TSB are using, it's hardly surprising that the answer is different!

No_Name wrote: »

Of course I understand your point on opening on 1st but not funded until 25th, but are there many who do that

I doubt it, why would they?

No_Name wrote: »

does that form the basis of TSB's calculation?

Yes, that's what I was trying to explain, although it's already clearly spelt out on their website and the extract I posted from it - surely "Based on accounts opened on the first of March, with 12 monthly deposits of £250 made on the 25th of the month" (in the context of "the term of the account, which is 12 months from the date of account opening") doesn't leave much room for misinterpretation?

No_Name

eskbanker wrote: »

Yes, that's what I was trying to explain, although it's already clearly spelt out on their website and the extract I posted from it - surely "Based on accounts opened on the first of March, with 12 monthly deposits of £250 made on the 25th of the month" (in the context of "the term of the account, which is 12 months from the date of account opening") doesn't leave much room for misinterpretation?

I see it now. I've got to stop skim reading!

Kernel_Sanders

Ed-1 wrote: »

e.g. open account on 19th March 2019.
Payment 1 19th March
Payment 2 1st April
Payment 3 1st May
Payment 4 1st June
Payment 5 1st July
Payment 6 1st August
Payment 7 1st September
Payment 8 1st October
Payment 9 1st November
Payment 10 1st December
Payment 11 1st January
Payment 12 1st February
Payment 13 1st March
Account matures 18th March 2020.

OP you won't get interest from all those dates quoted because when the 1st falls on a weekend or bank holiday the account doesn't get credited until the next working day.