Kent Reliance negative interest??

ForumUser7

Hi,

I’ve just checked my Kent Reliance Demelza Account 3.25% AER to log the interest earned this morning, and for some reason the interest showing is -5p… I held the minimum balance of £10, and am concerned because this brings it below that. 

Anyone have any idea why this happened please?

I will contact Kent Reliance, but I think they are pretty flooded with customer enquiries so I doubt I’ll get a quick reply.

Thanks very much

ForumUser7

wmb194

ForumUser7 said:

Hi,

I’ve just checked my Kent Reliance Demelza Account 3.25% AER to log the interest earned this morning, and for some reason the interest showing is -5p… I held the minimum balance of £10, and am concerned because this brings it below that. 

Anyone have any idea why this happened please?

I will contact Kent Reliance, but I think they are pretty flooded with customer enquiries so I doubt I’ll get a quick reply.

Thanks very much

ForumUser7

It could be an adjustment for an interest overpayment in a prior period. I've seen this before where e.g., some* building societies will anticipate your interest payment a few days in advance of the month's end based on the current balance but then you make a withdrawal in those few days and the interest payment is concomitantly too large. It then makes an adjustment to claw back the overpayment next month.

*I think Leeds does or used to to this.

ForumUser7

wmb194 said:

ForumUser7 said:

Hi,

I’ve just checked my Kent Reliance Demelza Account 3.25% AER to log the interest earned this morning, and for some reason the interest showing is -5p… I held the minimum balance of £10, and am concerned because this brings it below that. 

Anyone have any idea why this happened please?

I will contact Kent Reliance, but I think they are pretty flooded with customer enquiries so I doubt I’ll get a quick reply.

Thanks very much

ForumUser7

It could be an adjustment for an interest overpayment in a prior period. I've seen this before where e.g., some* building societies will anticipate your interest payment a few days in advance of the month's end based on the current balance but then you make a withdrawal in those few days and the interest payment is concomitantly too large. It then makes an adjustment to claw back the overpayment next month.

*I think Leeds does or used to to this.

Thanks @wmb194 - I made a large external transfer late October so it could be that I suppose - it would've been helpful if they'd named the debit 'interest overpayment'! I've written into them shortly after posting my original post - so hopefully they will get feedback that that process should perhaps be more clear for the end user...

ForumUser7

@wmb194 - you were right, thank you! In the complaint response they said it was due to that, and that they'll look at making sure it is clearer that that is how they calculate and pay it, as it didn't say that in their ts and cs.

ForumUser7

@wmb194 - or anyone else who knows too, if a company deducts interest do they have to report that to HMRC too please, and does anyone have any relevant FCA/HMRC information links regarding this? KR are saying it is classed as a fee, and therefore won’t be deducted from the amount they paid that they report to HMRC - but I think this is incorrect, because it was confirmed to be just recovering an overpayment of interest. Thank you

Section62

wmb194 said:

ForumUser7 said:

Hi,

I’ve just checked my Kent Reliance Demelza Account 3.25% AER to log the interest earned this morning, and for some reason the interest showing is -5p… I held the minimum balance of £10, and am concerned because this brings it below that. 

Anyone have any idea why this happened please?

I will contact Kent Reliance, but I think they are pretty flooded with customer enquiries so I doubt I’ll get a quick reply.

Thanks very much

ForumUser7

It could be an adjustment for an interest overpayment in a prior period. I've seen this before where e.g., some* building societies will anticipate your interest payment a few days in advance of the month's end based on the current balance but then you make a withdrawal in those few days and the interest payment is concomitantly too large. It then makes an adjustment to claw back the overpayment next month.

*I think Leeds does or used to to this.

...Not forgetting the Virgin Money online RS maturity interest debacle. 

ForumUser7

Section62 said:

wmb194 said:

ForumUser7 said:

Hi,

I’ve just checked my Kent Reliance Demelza Account 3.25% AER to log the interest earned this morning, and for some reason the interest showing is -5p… I held the minimum balance of £10, and am concerned because this brings it below that. 

Anyone have any idea why this happened please?

I will contact Kent Reliance, but I think they are pretty flooded with customer enquiries so I doubt I’ll get a quick reply.

Thanks very much

ForumUser7

It could be an adjustment for an interest overpayment in a prior period. I've seen this before where e.g., some* building societies will anticipate your interest payment a few days in advance of the month's end based on the current balance but then you make a withdrawal in those few days and the interest payment is concomitantly too large. It then makes an adjustment to claw back the overpayment next month.

*I think Leeds does or used to to this.

...Not forgetting the Virgin Money online RS maturity interest debacle. 

And YBS too - make me an esaver paid before the date stated in the ts and cs which was a bit odd

wmb194

ForumUser7 said:

@wmb194 - or anyone else who knows too, if a company deducts interest do they have to report that to HMRC too please, and does anyone have any relevant FCA/HMRC information links regarding this? KR are saying it is classed as a fee, and therefore won’t be deducted from the amount they paid that they report to HMRC - but I think this is incorrect, because it was confirmed to be just recovering an overpayment of interest. Thank you

How much are we talking about? 5p? That amount of money isn't going to concern anyone either way. I wouldn't spend another moment thinking about it.

ForumUser7

wmb194 said:

ForumUser7 said:

@wmb194 - or anyone else who knows too, if a company deducts interest do they have to report that to HMRC too please, and does anyone have any relevant FCA/HMRC information links regarding this? KR are saying it is classed as a fee, and therefore won’t be deducted from the amount they paid that they report to HMRC - but I think this is incorrect, because it was confirmed to be just recovering an overpayment of interest. Thank you

How much are we talking about? 5p? That amount of money isn't going to concern anyone either way. I wouldn't spend another moment thinking about it.

It was annoying, but not really a problem with the 5p. The problem is it's going to become a monthly occurrence - due to when I normally withdraw funds before paying into RSs. And as I now have my JISA maturity funds in there, it'll be larger amounts. Wondering whether I should stop using them, and use a different provider instead, or if they were just incorrect about the deduction not being HMRC reportable. I could just withdraw a few days earlier before the calculation cut off, but this would mean I had funds in lower paying accounts for a few days each month which seems like a waste.

wmb194

ForumUser7 said:

wmb194 said:

ForumUser7 said:

@wmb194 - or anyone else who knows too, if a company deducts interest do they have to report that to HMRC too please, and does anyone have any relevant FCA/HMRC information links regarding this? KR are saying it is classed as a fee, and therefore won’t be deducted from the amount they paid that they report to HMRC - but I think this is incorrect, because it was confirmed to be just recovering an overpayment of interest. Thank you

How much are we talking about? 5p? That amount of money isn't going to concern anyone either way. I wouldn't spend another moment thinking about it.

It was annoying, but not really a problem with the 5p. The problem is it's going to become a monthly occurrence - due to when I normally withdraw funds before paying into RSs. And as I now have my JISA maturity funds in there, it'll be larger amounts. Wondering whether I should stop using them, and use a different provider instead, or if they were just incorrect about the deduction not being HMRC reportable. I could just withdraw a few days earlier before the calculation cut off, but this would mean I had funds in lower paying accounts for a few days each month which seems like a waste.

Okay, so we might be talking 60p per year? £1? It's still not material.

ForumUser7

wmb194 said:

ForumUser7 said:

wmb194 said:

ForumUser7 said:

@wmb194 - or anyone else who knows too, if a company deducts interest do they have to report that to HMRC too please, and does anyone have any relevant FCA/HMRC information links regarding this? KR are saying it is classed as a fee, and therefore won’t be deducted from the amount they paid that they report to HMRC - but I think this is incorrect, because it was confirmed to be just recovering an overpayment of interest. Thank you

How much are we talking about? 5p? That amount of money isn't going to concern anyone either way. I wouldn't spend another moment thinking about it.

It was annoying, but not really a problem with the 5p. The problem is it's going to become a monthly occurrence - due to when I normally withdraw funds before paying into RSs. And as I now have my JISA maturity funds in there, it'll be larger amounts. Wondering whether I should stop using them, and use a different provider instead, or if they were just incorrect about the deduction not being HMRC reportable. I could just withdraw a few days earlier before the calculation cut off, but this would mean I had funds in lower paying accounts for a few days each month which seems like a waste.

Okay, so we might be talking 60p per year? £1? It's still not material.

I can’t work out how to calculate it in a spreadsheet, but I estimate more around £50