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

Newbie_John

jimjames said:

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.

And as you're getting £400ish a month, £4800 a year - then depending on how much you earn - you may be due to pay tax on it:
a) 20% rate - £4800 - £1000 allowance = £3800 * 20% tax = £760 
b) 40% rate - £4800 - £500   allowance = £4300 * 40% tax = £1720

So you see, the slight difference with monthly interest is not your biggest worry!

samuela66

AmityNeon said:

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.)

Thankyou, i was thinking of moving some as i dont require easy access.....

samuela66

Angelica123 said:

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. 

Just cos I bank with them I was thinking of doing something with ns and i

refluxer

samuela66 said:

Angelica123 said:

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. 

Just cos I bank with them I was thinking of doing something with ns and i

You'll probably find the rates at NS&I even worse than those on offer at the Halifax, although the tax-free nature of Premium Bond prizes can be useful, depending on your tax situation.

To get a better return on your money, it sounds like you're going to need to step out of your comfort zone a bit and look at banks you've possibly never heard of, potentially spreading the money over 2 or more if the £85k FSCS limit is an issue. Try looking at the most suitable options that meet your needs and, if it's a bank or building society you're not familiar with, try asking for feedback on here as there will be plenty of others with experience of all of the banks in the top tables.