RBS digital regular saver question

Sumselkb

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 I haven't withdrawn any money from my account.

ForumUser7

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 I haven't withdrawn any money from my account.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

Sumselkb

ForumUser7 said:

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 I haven't withdrawn any money from my account.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

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

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

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

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).

Calidad

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

The extra payment (anything above £150) will be returned to the sending account in the next few days.

Brewer21

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

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.