I don't think I have been paid the right amount of interest....

samuela66

Morning

I am not very good with figures but I checked my balance yesterday on 2 savings accounts we have with Halifax, the rewards extra paying 4.2%

I only opened them a couple of months ago with an inheritance but I feel as though there is a discrepancy in the one with the higher sum in, if somebody who is any good with numbers could take a look I would be grateful..

Joint saver opened on the 12th Oct balance of 46,266.19, 10th nov gross interest 156.67, 11 dec gross interest 162.44. I think this one is right however my personal rewards extra is

11 October balance 3,633.82, 12.67 interest went in the day also 3,646.49 balance, 12th october transferred 80.000.00 into it balance was 83.646.51, everytime i use my card it puts save the change into this account also, 13 Nov balance was 83.666.16, interest went in that day also of 311.62 so balance 83.977.78, on 11th dec balance is 83.977.09, that date they put interest of 265.44 into my account balance of 84.262.53, surely my interest should be virtually the same as last months, this just doesnt look right to me.

thanks for reading and hopefully knowing if it is right or wrong Sam

BoGoF

On the 2nd account why is the balance on 11th December (£83,977.09) less than that of 13th November (£83,977.78)? Are you spending from this account?

samuela66

BoGoF said:

On the 2nd account why is the balance on 11th December (£83,977.09) less than that of 13th November (£83,977.78)? Are you spending from this account?

BoGoF said:

On the 2nd account why is the balance on 11th December (£83,977.09) less than that of 13th November (£83,977.78)? Are you spending from this account?

Sorry it is 83.997.09, terrible with figures.....

Stargunner

As you received interest on the 13th November and then on the 11th December, the interest that you received in December was for 28 days of interest and not a full month, which is why it is lower.

samuela66

Stargunner said:

As you received interest on the 13th November and then on the 11th December, the interest that you received in December was for 28 days of interest and not a full month, which is why it is lower.

Its quite a difference though, I thought 

BoGoF

samuela66 said:

Stargunner said:

As you received interest on the 13th November and then on the 11th December, the interest that you received in December was for 28 days of interest and not a full month, which is why it is lower.

Its quite a difference though, I thought 

An example based on a balance of £80,000 @ 4.2% = £3360 p/a so equivalent of  £9,20 per day. It looks like your November interest was actually 32 days so say £294.40. December was 28 days so say £257.60. These are rough figs to give you an idea.

AmityNeon

samuela66 said:

Joint saver opened on the 12th Oct balance of 46,266.19, 10th nov gross interest 156.67, 11 dec gross interest 162.44.

This is correct. Note that the value date of those interest payments is the next day, so for the purposes of determining your daily account balance, the interest payments weren't added to your account until 11th Nov and 12th Dec. This is a quirk of Lloyds/Halifax.

Balance      Days  4.12% gross
£46,266.19   30    £156.67
£46,422.86   31    £162.44

samuela66 said:

11 October balance 3,633.82, 12.67 interest went in the day also 3,646.49 balance, 12th october transferred 80.000.00 into it balance was 83.646.51, everytime i use my card it puts save the change into this account also, 13 Nov balance was 83.666.16, interest went in that day also of 311.62 so balance 83.977.78, on 11th dec balance is 83.977.09 83.997.09, that date they put interest of 265.44 into my account balance of 84.262.53, surely my interest should be virtually the same as last months, this just doesnt look right to me.

Interest is calculated daily on the closing account balance each day, at the (daily) rate of 4.12% gross (divided by 365). If we ignore the small save the change increases:

Balance      Days  4.12% gross
£83,646.51   33    £311.58
£83,977.78   28    £265.42

The interest payments look correct to me.

(As a side note, you're almost exceeding the FSCS limit of £85,000 through your personal savings account alone. There are more suitable products to hold your inheritance, even if you require easy access.)

Angelica123

Out of curiosity, is there a reason that you have chosen a Halifax saver at 4.2%? Plenty of easy-access savers for >5%. You may also want to consider putting some in an ISA (also many over 5%) depending on whether you will likely go over your personal savings allowance. 

xylophone

You might wish to check savings rates.

https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

jimjames

samuela66 said:

Stargunner said:

As you received interest on the 13th November and then on the 11th December, the interest that you received in December was for 28 days of interest and not a full month, which is why it is lower.

Its quite a difference though, I thought 

If you're worried about that sort of difference I think you should be more worried about the interest you're losing by not getting a decent rate. You're losing at least £1000 a year from that based on those balances.

Middle_of_the_Road

xylophone said:

You might wish to check savings rates.

https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

That really is an awful website. Page forever freezing, let alone an endless amount questionable advertising.

A more reliable option-
Best Easy Access Savings Accounts | Up To 5.22% (moneyfactscompare.co.uk)