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TSB Interest is incorrect this month
Comments
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I had a one year fixed ISA mature today and the interest was calculated as AER % X 366/3650
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Seems a weird way of doing things. There are quite a few options for calculating interest and I once saw a USD bond based on act/365 but other than that it's always been pretty standard stuff.blue.peter said:
Hargreaves Lansdown uses this method for calculating their charges and, I think, the (tiny) interest that they pay on ISAs. Yes, I agree that it's a very odd way of doing it, and Iit surprised me when I discovered it. I'm not aware of any others. However, if one firm does it this way, it's possible that others will.Ballard said:
The standard interest calculation for current accounts is actual/365 or actual/366. I’d be interested to know which organisations go act/365.25.blue.peter said:Some organisations assume 365.25 days in every year. Different businesses have different ways of dealing with the issue.
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