RBS digital regular saver question

Hello, I opened an RBS digital regular saver recently and have a question about how the interest is calculated.

I know that on 1 March 2023 I had £120.02 in my account. When the interest was paid on 03 April 2023 I received £0.72 in interest. I thought it would have been more than that? Have I done my sums wrong? I haven't withdrawn any money from my account.
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  • ForumUser7
    ForumUser7 Posts: 2,389 Forumite
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    edited 4 April 2023 at 2:58PM
    Sumselkb said:
    Hello, I opened an RBS digital regular saver recently and have a question about how the interest is calculated.

    I know that on 1 March 2023 I had £120.02 in my account. When the interest was paid on 03 April 2023 I received £0.72 in interest. I thought it would have been more than that? Have I done my sums wrong? I haven't withdrawn any money from my account.
    How much did you think you would've got? It'll help me figure out if you've done the sums wrong or not.

    Interest is calculated on a daily basis and paid into your account on the first business day of the month. You’ll be able to see and access the interest in your account on the following day.

    The amount seems about right to me, but I may be missing something
    If you want me to definitely see your reply, please tag me @forumuser7 Thank you.

    N.B. (Amended from Forum Rules): You must investigate, and check several times, before you make any decisions or take any action based on any information you glean from any of my content, as nothing I post is advice, rather it is personal opinion and is solely for discussion purposes. I research before my posts, and I never intend to share anything that is misleading, misinforming, or out of date, but don't rely on everything you read. Some of the information changes quickly, is my own opinion or may be incorrect. Verify anything you read before acting on it to protect yourself because you are responsible for any action you consequently make... DYOR, YMMV etc.
  • Sumselkb
    Sumselkb Posts: 78 Forumite
    Fourth Anniversary 10 Posts
    Sumselkb said:
    Hello, I opened an RBS digital regular saver recently and have a question about how the interest is calculated.

    I know that on 1 March 2023 I had £120.02 in my account. When the interest was paid on 03 April 2023 I received £0.72 in interest. I thought it would have been more than that? Have I done my sums wrong? I haven't withdrawn any money from my account.
    How much did you think you would've got? It'll help me figure out if you've done the sums wrong or not.

    Interest is calculated on a daily basis and paid into your account on the first business day of the month. You’ll be able to see and access the interest in your account on the following day.

    The amount seems about right to me, but I may be missing something
    It says it is 6.17% AER / 6.00% Gross p.a. (variable) on your first £5,000.

    I was thinking that 6% of £120 is £7.20?
  • Band7
    Band7 Posts: 2,285 Forumite
    1,000 Posts Name Dropper
    The A in AER stands for annual. So you would get £7.20 on £120 if you left the £120 in the account for one year.

    RBS pay interest monthly. So if you had your £120 in the account for all of March, you get 31 days worth of the daily interest. The daily interest is the Gross interest divided by 365.
  • Sumselkb
    Sumselkb Posts: 78 Forumite
    Fourth Anniversary 10 Posts
    Band7 said:
    The A in AER stands for annual. So you would get £7.20 on £120 if you left the £120 in the account for one year.

    RBS pay interest monthly. So if you had your £120 in the account for all of March, you get 31 days worth of the daily interest. The daily interest is the Gross interest divided by 365.
    Thanks for explaining that. I know how to calculate it now.
  • Sumselkb
    Sumselkb Posts: 78 Forumite
    Fourth Anniversary 10 Posts
    So if at some point in the future if I get to £5,000, and if the interest rate is still 6%, then the interest I would receive would be about £300 a year, so £300 divided by 365 is about 82p a day multiplied by the number of days in the month? So I would get about £25 a month?
  • ForumUser7
    ForumUser7 Posts: 2,389 Forumite
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    edited 4 April 2023 at 3:34PM
    Sumselkb said:
    So if at some point in the future if I get to £5,000, and if the interest rate is still 6%, then the interest I would receive would be about £300 a year, so £300 divided by 365 is about 82p a day multiplied by the number of days in the month? So I would get about £25 a month?
    That's right - from your post at 3:02 I think you're already aware of this, but currently the rate plummets after £5,000, so at that stage it would be worth opening the DRS with NatWest (you can hold the RBS one and skim off the interest to maintain £5,000, and then hold the NatWest one at the same time without any need to withdraw funds).
    If you want me to definitely see your reply, please tag me @forumuser7 Thank you.

    N.B. (Amended from Forum Rules): You must investigate, and check several times, before you make any decisions or take any action based on any information you glean from any of my content, as nothing I post is advice, rather it is personal opinion and is solely for discussion purposes. I research before my posts, and I never intend to share anything that is misleading, misinforming, or out of date, but don't rely on everything you read. Some of the information changes quickly, is my own opinion or may be incorrect. Verify anything you read before acting on it to protect yourself because you are responsible for any action you consequently make... DYOR, YMMV etc.
  • Calidad
    Calidad Posts: 64 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    I’m going to piggyback on to this - I have the RBS Digital RS and I have inadvertently paid in £300 this month via a manual ) £150 pay in as well as £150 through an SO which I thought I had cancelled. 

    I know the max pay in is £150, has anyone ever done similar by mistake? I know they can close the account down.
  • k_man
    k_man Posts: 1,636 Forumite
    1,000 Posts Second Anniversary Name Dropper
    The extra payment (anything above £150) will be returned to the sending account in the next few days.
  • Brewer21
    Brewer21 Posts: 370 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    Calidad said:
    I’m going to piggyback on to this - I have the RBS Digital RS and I have inadvertently paid in £300 this month via a manual ) £150 pay in as well as £150 through an SO which I thought I had cancelled. 

    I know the max pay in is £150, has anyone ever done similar by mistake? I know they can close the account down.
    I did exactly this on first opening my RS with RBS. They didn't really make it clear from the off, I set up a standing order but got no notification of such happening. The date passed that the SO should have happened but nothing did, nothing showed up in my banking app of it being set up either. I then transferred manually the £150 then did the same 1 month later, then the SO appeared and paid £150. Because I don't keep that amount in the account (£300) they told me via text I've gone overdrawn.
    Anyways quickly remedied I took the extra £150 out. I think to they need a full month's notice when setting up the SO, I may have missed calculated that when initially setting it up.
  • t1redmonkey
    t1redmonkey Posts: 945 Forumite
    Part of the Furniture 500 Posts Energy Saving Champion Home Insurance Hacker!
    Calidad said:
    I’m going to piggyback on to this - I have the RBS Digital RS and I have inadvertently paid in £300 this month via a manual ) £150 pay in as well as £150 through an SO which I thought I had cancelled. 

    I know the max pay in is £150, has anyone ever done similar by mistake? I know they can close the account down.
    yep I did the same when I opened it.  I just manually moved out the excess I overpaid and it was fine.
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