Barclays Rainy Day Saver overpaid interest

RG2015

For a few months I have been holding £5,000 in the Barclays Rainy day saver which pays 5.00% pa gross.

I withdrew £2,000 on Wednesday 29 March so expected my monthly interest to be lower than the full amount by £0.82. However today's interest credited is the full £21.23.

Has anyone else had incorrect calculations on this account? I have shown my calculations below.

Month of March (31 days)
£5,000 x 5.00% x 31 / 365 = £21.23

29 Mar to 31 Mar (3 days)
£2,000 x 5.00% x 3 / 365 = £0.82

PloughmansLunch

My interest this morning for the entire month sat at £5k was £22.60 if that helps?

Beddie

RG2015 said:

For a few months I have been holding £5,000 in the Barclays Rainy day saver which pays 5.00% pa gross.

I withdrew £2,000 on Wednesday 29 March so expected my monthly interest to be lower than the full amount by £0.82. However today's interest credited is the full £21.23.

Has anyone else had incorrect calculations on this account? I have shown my calculations below.

Month of May (31 days)
£5,000 x 5.00% x 31 / 365 = £21.23

29 Mar to 31 Mar (3 days)
£2,000 x 5.00% x 3 / 365 = £0.82

You haven't compounded the interest, so your figures are incorrect. The post above me shows the correct amount paid, as I got that too.

Band7

PloughmansLunch said:

My interest this morning for the entire month sat at £5k was £22.60 if that helps?

I got that too, and that's an overpayment, too, as it should be £21.23. It won't bankrupt Barclays but it is worrying if a bank can't work out the correct interest.

Beddie said:

You haven't compounded the interest, so your figures are incorrect. The post above me shows the correct amount paid, as I got that too.

There is no compounding involved if your balance was £5k max for several months, i.e. interest was skimmed off on the 1st of a month.

ForumUser7

Is it possible that Barclays pro-rates interest (calculates it early based on the assumption the balance doesn’t change, and then pays it on the expected date), and then will deduct the overpayment off next months interest? Kent Reliance and YBS do this.

RG2015

I was paid £22.60 on Tuesday 3rd January but that was for 33 days as the 1st and 2nd were non working days.

£5,000 x 5.00% x 33 / 365 = £22.60

It looks like people were paid  for an extra two days in March. I wonder if they will claw it back before Monday.


A few years back Nationwide credited annual interest on a Saturday calculated to Sunday. I withdrew it all without realising this.

A year later they debited the account with a few pennies being the interest for the Sunday, leaving me with an overdrawn savings account.  

ordnancesurvey84

This month's interest is for the 33 days from 27th February to 31st March inclusive.
Last month's interest if for the 28 days from 30th January to 26th February inclusive.

33/365 x 0.05 x 5000 = £22.60

The £21.23 you received is equivalent to 28 days with a £5000 balance and 5 days with a £3000 balance - is this a possibility?

RG2015

ForumUser7 said:

Is it possible that Barclays pro-rates interest (calculates it early based on the assumption the balance doesn’t change, and then pays it on the expected date), and then will deduct the overpayment off next months interest? Kent Reliance and YBS do this.

Are the Kent Reliance and YBS easy access accounts?

This process sounds crazy as easy access means the balance can change at any time.

Surely interest has to be calculated on a daily basis on the closing balance. 

ForumUser7

RG2015 said:

ForumUser7 said:

Is it possible that Barclays pro-rates interest (calculates it early based on the assumption the balance doesn’t change, and then pays it on the expected date), and then will deduct the overpayment off next months interest? Kent Reliance and YBS do this.

Are the Kent Reliance and YBS easy access accounts?

This process sounds crazy as easy access means the balance can change at any time.

Surely interest has to be calculated on a daily basis on the closing balance. 

They are!

Precisely - that's what I said to them when I found out!

With KR, I did a large withdrawal on the last day of the month (all bar minimum balance), and this caused my interest next month to be negative, as they reclaimed the overpayment. I complained, as this took my account below the minimum balance, and I wasn't consulted first. It was upheld, and we agreed a satisfactory resolution, but I am wary of using as often now, especially as large withdrawals at the end of the month are common place for me, to fund my regular savers for the next months cycle. See ~ https://forums.moneysavingexpert.com/discussion/6407529/kent-reliance-negative-interest#latest

ForumUser7

Re YBS ~ 27 March at 4:39PM and the page before too on the top easy access savings thread

RG2015

ordnancesurvey84 said:

This month's interest is for the 33 days from 27th February to 31st March inclusive.
Last month's interest if for the 28 days from 30th January to 26th February inclusive.

33/365 x 0.05 x 5000 = £22.60

The £21.23 you received is equivalent to 28 days with a £5000 balance and 5 days with a £3000 balance - is this a possibility?

Sounds odd not to calculate to the last working day of the month.

I think I need to compile a spreadsheet calculating daily interest from when I opened the account.