BoS Vantage Account how much Interest?

David28

I foolishly let my BoS Vantage account balance fall below £5000 this month and the interest paid was £3.01 
How much would I have got if I did not allow the balance to fall below £5000?

Ed-1

David28 said:

I foolishly let my BoS Vantage account balance fall below £5000 this month and the interest paid was £3.01 
How much would I have got if I did not allow the balance to fall below £5000?

1.49% on anything extra up to £5,000. So a few pence more perhaps?

E.g. if you had £4800 in there all month you'd only miss out on £(200 x 0.0149)/365 x 30 = 24p

garmeg

Ed-1 said:

David28 said:

I foolishly let my BoS Vantage account balance fall below £5000 this month and the interest paid was £3.01 
How much would I have got if I did not allow the balance to fall below £5000?

1.49% on anything extra up to £5,000. So a few pence more perhaps?

E.g. if you had £4800 in there all month you'd only miss out on £(200 x 0.0149)/365 x 30 = 24p

The interest rate is 0.60% on up to £4,000 plus 1.5% on the next £1,000 so £24.00 + £15.00 = £39.00 per year or £3.25 per month.

So you lost 24p which matches the first reply.

So you must have had an average balance of £4,800.00.

YorkshireBoy

Mine paid £3.09 for November. Strangely my Lloyds paid 4p less at £3.05 for exactly the same £5K balance.

David28

So letting my balance drop to £4512.42 for 4 days cost me 8p.
Then again if I had moved that £487.58 from my Marcus savings account how much would I have lost in interest in that account?
Why do my excel calculations never match the bank calculations?

Ed-1

David28 said:

So letting my balance drop to £4512.42 for 4 days cost me 8p.
Then again if I had moved that £487.58 from my Marcus savings account how much would I have lost in interest in that account?
Why do my excel calculations never match the bank calculations?

Interest is calculated daily on the balance at the end of each day. You get 365th of the gross annual rate for each day that you have a qualifying credit balance at the end of day cut-off time (which is midnight with most banks, but around 8:15pm for Santander).

fredar

garmeg said:

Ed-1 said:

The interest rate is 0.60% on up to £4,000 plus 1.5% on the next £1,000 so £24.00 + £15.00 = £39.00 per year or £3.25 per month.

But not all months are equal

David28

What excel formula should I be using to calculate the daily interest because this formula does not give what the bank gives?
A4 = £3,999.99
A2 = 0.6%
A3 = 30
A6 =A4*(1+(A2/365))^(A3) = £4001.96

F4 = £1001.01
F2 = 1.49%
F3 = 30
F6=F4*(1+(F2/365))^(F3) = £1001.23

Total = £5003.19
Interest = £3.20
yet YB was paid £3.09

youngretired

I also got £3.09 on both Lloyds and BoS. It is because interest in November was paid on the 2nd and so actually only 29 days worth of interest this time as paid on the 1st.

eskbanker

David28 said:

What excel formula should I be using to calculate the daily interest because this formula does not give what the bank gives?
A4 = £3,999.99
A2 = 0.6%
A3 = 30
A6 =A4*(1+(A2/365))^(A3) = £4001.96

F4 = £1001.01
F2 = 1.49%
F3 = 30
F6=F4*(1+(F2/365))^(F3) = £1001.23

Total = £5003.19
Interest = £3.20
yet YB was paid £3.09

As above, the variance is likely to be due to the number of days in the interest period but, for the record, your formula models interest compounding daily throughout the month when it's only calculated daily and added monthly so would only compound on a monthly basis.  In other words, the interest is simply <balance> multiplied by <daily rate> multiplied by <number of days> rather than to the power of the number of days, although the difference is negligible when rates are at this level....

David28

So the interest will never be compounded if the balance never drops below £5,000.
That is where I have been going wrong on my spreadsheet and why it never matches what BoS pays..