Interest calculation

ColdIron

Does the period you are using for Gatehouse correspond with that used? Some banks use monthly anniversary of deposit rather than calender month. You would expect it to balance out over time though

jaypers

So it’s about 4.95% in reality? I think your only option is to ask them as 4.95% isn’t exact either. 

steveksullivan

jaypers said:

So it’s about 4.95% in reality? I think your only option is to ask them as 4.95% isn’t exact either. 

I clarified with them over the phone that it should be 5.03% .... and yes, I've asked them for a copy of the calculation

Wheres_My_Cashback

You've assumed that because a month has x days you will get interest for x days. That's not how it works with many banks.
The number of days interest you get will sometimes depend if the interest due date is over a weekend/bank hol. EG, One month you might get 28 days paid interest, another 34 days, but over the year it will all balance out to 365/366 days.

steveksullivan

Thanks ..... but the amount involved is too small to be to do with number of days interest - there is something else going on here. Guess I wait for their calculation. Thanks all.