Interest when savings mature at weekend

aroominyork

When a fixed term savings bond matures at a weekend (or during a long weekend) so the repayment is delayed until the next working day, is an extra 1/2/3/4 days' interest added, or does the bank/savings institution keep the extra interest and put it towards their staff Xmas party? (OH and I each put £10k into Nationwide 5.5% 18 month bond on Tuesday. Roll forward 18 months...Thursday 25 December 2025.)

subjecttocontract

No idea but, if they don't pay interest, I never get very excited about it because £10K @ 5% is only worth £1.37 a day !

aroominyork

But £20k for four days at 5.5% is £12, a couple of pints! (You've guessed it - I don't live in London.)

nottsphil

aroominyork said:

But £20k for four days at 5.5% is £12, a couple of pints! (You've guessed it - I don't live in London.)

It's actually only £10.96, but that would pay for three pints up here!

aroominyork

I love hate to be picky, but surely 20,000 * 5.5% / 365 * 4 = 12.05.

nottsphil

aroominyork said:

I love hate to be picky, but surely 20,000 * 5.5% / 365 * 4 = 12.05.

Not picky at all -  I failed to spot that you weren't using subjecttocontract's 5%.

Hoenir

aroominyork said:

When a fixed term savings bond matures at a weekend (or during a long weekend) so the repayment is delayed until the next working day, is an extra 1/2/3/4 days' interest added, or does the bank/savings institution keep the extra interest and put it towards their staff Xmas party? (OH and I each put £10k into Nationwide 5.5% 18 month bond on Tuesday. Roll forward 18 months...Thursday 25 December 2025.)

The bank is unable to lend the money out so won't be earning anything on the deposit either. 

aroominyork

Hoenir said:

aroominyork said:

When a fixed term savings bond matures at a weekend (or during a long weekend) so the repayment is delayed until the next working day, is an extra 1/2/3/4 days' interest added, or does the bank/savings institution keep the extra interest and put it towards their staff Xmas party? (OH and I each put £10k into Nationwide 5.5% 18 month bond on Tuesday. Roll forward 18 months...Thursday 25 December 2025.)

The bank is unable to lend the money out so won't be earning anything on the deposit either. 

Surely not. Any money it lends out before Christmas Day continues to earn interest for the bank until it needs to repay me on 29 December.

nottsphil

Hoenir said:

aroominyork said:

When a fixed term savings bond matures at a weekend (or during a long weekend) so the repayment is delayed until the next working day, is an extra 1/2/3/4 days' interest added, or does the bank/savings institution keep the extra interest and put it towards their staff Xmas party? (OH and I each put £10k into Nationwide 5.5% 18 month bond on Tuesday. Roll forward 18 months...Thursday 25 December 2025.)

The bank is unable to lend the money out so won't be earning anything on the deposit either. 

In which case they shouldn't mind returning the capital to the Investor promptly. Faster payments etc do actually work at weekends and on bank holidays!

aroominyork

nottsphil said:

Hoenir said:

aroominyork said:

When a fixed term savings bond matures at a weekend (or during a long weekend) so the repayment is delayed until the next working day, is an extra 1/2/3/4 days' interest added, or does the bank/savings institution keep the extra interest and put it towards their staff Xmas party? (OH and I each put £10k into Nationwide 5.5% 18 month bond on Tuesday. Roll forward 18 months...Thursday 25 December 2025.)

The bank is unable to lend the money out so won't be earning anything on the deposit either. 

In which case they shouldn't mind returning the capital to the Investor promptly. Faster payments etc do actually work at weekends and on bank holidays!

Ah... well, maybe they do. I just assumed that bank holiday means a holiday for the bank.

nottsphil

aroominyork said:

nottsphil said:

Hoenir said:

aroominyork said:

When a fixed term savings bond matures at a weekend (or during a long weekend) so the repayment is delayed until the next working day, is an extra 1/2/3/4 days' interest added, or does the bank/savings institution keep the extra interest and put it towards their staff Xmas party? (OH and I each put £10k into Nationwide 5.5% 18 month bond on Tuesday. Roll forward 18 months...Thursday 25 December 2025.)

The bank is unable to lend the money out so won't be earning anything on the deposit either. 

In which case they shouldn't mind returning the capital to the Investor promptly. Faster payments etc do actually work at weekends and on bank holidays!

Ah... well, maybe they do. I just assumed that bank holiday means a holiday for the bank.

It shouldn't mean a holiday for the capital though!