0.84% interest calculation on Tesco Internet Saver account

General_Grant

The interest on this account was credited on 31 March.

The amount added to my account was less than a third of what I expected.

I'll contact them about this but wondered whether others had found the same.

eskbanker

With the interest comprising two separate elements (standard, plus bonus) they pay these at different times, as per https://www.tescobank.com/savings/flexible/internet-saver/

How interest is calculated and paid

Interest is calculated daily. Standard rate interest is paid to you annually in March and bonus interest is paid to you at the end of the bonus period.

The rate will have changed during the year and presumably your balance too, but if none of that explains it, perhaps show your workings?

General_Grant

eskbanker said:

With the interest comprising two separate elements (standard, plus bonus) they pay these at different times, as per https://www.tescobank.com/savings/flexible/internet-saver/

How interest is calculated and paid

Interest is calculated daily. Standard rate interest is paid to you annually in March and bonus interest is paid to you at the end of the bonus period.

The rate will have changed during the year and presumably your balance too, but if none of that explains it, perhaps show your workings?

Thank you for that fast response.

I'd not made a note of the bonus being separately calculated as the statement and online display just shows the combined total percentage.  

The T&C document which I downloaded the day I opened the account uses phrases like "if bonus interest applies to your account" and "bonus interest may be applicable".  I'd better look out what else they may have sent me by the Royal Snail.

ColdIron

I have the same 0.84% account as you. The Bonus rate is 0.59% and the standard rate is 0.25%. The standard rate was 0.10% up to 10/01/2022 so it's not going to be a lot. The bulk of the interest will come from the bonus rate paid on the anniversary of opening the account

refluxer

General_Grant said:

Thank you for that fast response.

I'd not made a note of the bonus being separately calculated as the statement and online display just shows the combined total percentage.  

The T&C document which I downloaded the day I opened the account uses phrases like "if bonus interest applies to your account" and "bonus interest may be applicable".  I'd better look out what else they may have sent me by the Royal Snail.

It sounds like that's the Internet Saver general T&Cs - the 'summary box' PDF for the account you opened details the interest with and without bonus and when each is payable. This PDF doesn't seem to be available via online banking, so I must have downloaded it at the time I opened the account.

It's also worth noting that the tax year interest summary (if you need it) isn't sent through the post but is available in the documents section of their online banking site/app.

General_Grant

ColdIron said:

I have the same 0.84% account as you. The Bonus rate is 0.59% and the standard rate is 0.25%. The standard rate was 0.10% up to 10/01/2022 so it's not going to be a lot. The bulk of the interest will come from the bonus rate paid on the anniversary of opening the account

Thanks for that.
Complicates my spreadsheet - but I'm feeling in a spreadsheet mood this evening.