The Top Fixed Interest Savings Discussion Area

StayinAlive

Apologies for a bit of a nerdish question here but I've been wondering about the effect of leap years on AER calculations.

Take two 1 year bonds of £10,000 at 4.0% one starting 1/2/23 and one starting 1/3/23.

The first will mature on 1/2/24 with £400.00 interest but what happens with the second?

Does it get another days interest (which would be about £1.09 at the 365 day rate) or

does it mature a day earlier (i.e. after 365 days) or does it mature on 1/3/23 with £400.00?

RG2015

StayinAlive said:

Apologies for a bit of a nerdish question here but I've been wondering about the effect of leap years on AER calculations.

Take two 1 year bonds of £10,000 at 4.0% one starting 1/2/23 and one starting 1/3/23.

The first will mature on 1/2/24 with £400.00 interest but what happens with the second?

Does it get another days interest (which would be about £1.09 at the 365 day rate) or

does it mature a day earlier (i.e. after 365 days) or does it mature on 1/3/23 with £400.00?

Have a look at the thread on the link below from 2008.

https://forums.moneysavingexpert.com/discussion/1336045/leap-year-interest-calculation

InvesterJones

Shawbrook 1yr issue 88 is now 4.54%
https://www.shawbrook.co.uk/direct/savings/personal-savings/fixed-rate-bonds/

Pompeydave1967

Thanks Shawbrook , great timing as my 1 year fixed  @ 1.94% finishes with them today …

jaypers

Pompeydave1967 said:

Thanks Shawbrook , great timing as my 1 year fixed  @ 1.94% finishes with them today …

Interesting that their 2 year is only 4%. Thinking now is the time to jump on the Charter 2 year at 4.57%

TiVo_Lad

InvesterJones said:

Shawbrook 1yr issue 88 is now 4.54%
https://www.shawbrook.co.uk/direct/savings/personal-savings/fixed-rate-bonds/

Althought SmartSave do top it at 4.55% (with a minimum £10K balance however so not suitable for all)

dgpur

Three weeks ago I opened up a 1 year account at 4.48% with Oak North, giving me 14 days to fund it. I went with a better offer elsewhere. However, they’ve not only left my account open to fund, but have also increased the offered interest rate three times!

13/04 - 4.51%
17/04 - 4.54%
18/04 - 4.55%

Has anyone come across this sort of thing before? Seems a bit desperate!

refluxer

dgpur said:

Three weeks ago I opened up a 1 year account at 4.48% with Oak North, giving me 14 days to fund it. I went with a better offer elsewhere. However, they’ve not only left my account open to fund, but have also increased the offered interest rate three times!

13/04 - 4.51%
17/04 - 4.54%
18/04 - 4.55%

Has anyone come across this sort of thing before? Seems a bit desperate!

There are a few banks battling it out for the top spot at the moment, including Smartsave, OakNorth, Vanquis etc.

Some banks like Ford Money offer a 'best rate guarantee' where they will give you a better rate if it increases in-between you opening it and making your first deposit. I didn't realise that OakNorth also did that, but it could explain what you've seen. It would be unusual for the account to be open beyond the 14 day funding window though - it can sometimes take a while for any redundant accounts to be removed from online banking. I opened a fixed rate account with Ford that I changed my mind about and didn't fund - it took a good week or two to disappear. 

VNX

DF Capital three year bond up from 4.56 to 4.62

phoned up and they moved me to the higher rate as within cooling off period 

SickGroove

Atom 1 year fixed 4.55%