Virgin Money 10.38% regular monthly saver

[Deleted User]

simonsmithsays said:

£6.10 added here (opened on 2/8/24)

I'll be honest I forgot about monthly interest on the Virgin accounts 

Ditto. Same interest amount and same lack of memory!

AmityNeon

sparky0138 said:

AmityNeon said:

This type of discrepancy is not one which will likely be definitively clarified by any regular support agent, so it's probably safer to assume the error is a simple misprint.

You're absolutely right about it not being clarified. I sent them a message and it may as well have been an AI bot that answered me. They basically repeated what's on the account summary page about paying in £250 a month and failed to address what was printed on the statement. They didn't even attempt to explain it.

I deposited an extra £250 yesterday (30 Sep) but didn’t receive interest on it today. Interest on the £500 is correct, matching one of the various amounts already posted.

HHUK

AmityNeon said:

I deposited an extra £250 yesterday (30 Sep) but didn’t receive interest on it today. 

The terms say interest will be added on the last working day in March, June and September. Were you expecting interest on money held in the account for less than 24 hours? Or am I missing something?

allegro120

HHUK said:

AmityNeon said:

I deposited an extra £250 yesterday (30 Sep) but didn’t receive interest on it today. 

The terms say interest will be added on the last working day in March, June and September. Were you expecting interest on money held in the account for less than 24 hours? Or am I missing something?

The number of hours is irrelevant, but the dates. If the interest was credited on 30th Sept it should show on 1st October.

skitskut

allegro120 said:

jaypers said:

Cheeky Virgin Money…..posting date for money paid in on the 1st (Sunday) is the 2nd. Looks like they don’t count weekends when it’s the 1st. 

Lloyds Group displays the following working day date, but interest is credited on the day of deposit.  Could this be the case with VM? I suppose the only way to find out is to do some maths at the end on this month when the first pay out is made

Doing the maths, looks like interest didn't get credited for money paid in on the 1st (Sunday) until the 2nd.

HHUK

allegro120 said:

The number of hours is irrelevant, but the dates. If the interest was credited on 30th Sept it should show on 1st October.

But would you expect interest to be credited on 30 September in respect of money only received on that date?

(The £6.16 interest on the £500 already in my account shows as having been credited yesterday 30 September. My October standing order payment of £250 has left my main current account; but still shows as pending on the Virgin App.)

jaypers

SamDude said:

TomJ said:

SamDude said:

So the best thing for me to stay under my PSA is to stop paying in to this Reg saver until April.
Once I've received the March interest payment, I will pay in 6x £250 to catch-up the missed contributions so it counts for next year.
(the £1500 will stay in my ISA in the mean time)

Unless you can earn >8.64%  tax free else where, you're surely better off paying into this and paying the tax.  Oh, >6.228% for higher rate taxpayers or >5.079% for additional rate payers, though the latter have a £0 PSA to start with...

That is true, however I'm trying to manage my income tax to stay under the 40% band, so staying within the PSA is more important for me this year.

If you creep over do some charity donations with Gift Aid. You’re doing a good thing, you’ll feel good for doing a good thing and the tax thing can be offset on your tax return to bring you under the threshold again. Easy if you do self assessment but not sure how it works if you don’t though.

allegro120

skitskut said:

allegro120 said:

jaypers said:

Cheeky Virgin Money…..posting date for money paid in on the 1st (Sunday) is the 2nd. Looks like they don’t count weekends when it’s the 1st. 

Lloyds Group displays the following working day date, but interest is credited on the day of deposit.  Could this be the case with VM? I suppose the only way to find out is to do some maths at the end on this month when the first pay out is made

Doing the maths, looks like interest didn't get credited for money paid in on the 1st (Sunday) until the 2nd.

Thank you! I wish there was a requirement for RS providers to include this information in "key facts".

ThePirates

6.16 for me too!

AmityNeon

HHUK said:

allegro120 said:

The number of hours is irrelevant, but the dates. If the interest was credited on 30th Sept it should show on 1st October.

But would you expect interest to be credited on 30 September in respect of money only received on that date?

(The £6.16 interest on the £500 already in my account shows as having been credited yesterday 30 September. My October standing order payment of £250 has left my main current account; but still shows as pending on the Virgin App.)

The amount of £6.16 comprises 32 days of £250 and 29 days of £500 at 10.00%, from 01 August to 30 September inclusive. The transaction may have a posting date of 30 September, but it likely wasn't credited until either 01 October, or at least until after the cut-off time of determining closing balances for the purposes of calculating interest (which would be very late in the evening, e.g. after 22:00, and whilst transactions in the two-hour window to midnight would technically be possible, all transactions would have an eventual posting/value date of the next day).

Such interest credits have a value date (or effective date) of the next working day, e.g. your statement and transaction history may show a closing balance on 30 September of £506.16, but for the purposes of calculating interest, it was just £500. The next interest period starts from 01 October at £756.16, not 30 September at £506.16.

Other banks, especially of the modern variety (e.g. Chase/Kroo/Starling), operate more intuitively, where the literal date interest is credited matches both the posting date and the value date, and none of the aforementioned convolution applies.

Metro Bank, despite being more modern (i.e. 21st century), also backdates the posting date of interest credits to the last working day of the month, so you could spend the whole weekend not seeing anything at all until the morning of Monday 02 September, when you log in and suddenly see interest that was 'credited' on Friday 30 August calculated from closing balances that didn't even exist at the time (because August wasn't even over).

I'll also mention Skipton as an oddball. They accept incoming Faster Payments on non-working days and these transactions are posted to your account accurately (e.g. Sunday 01 September), but the value dates are delayed, as interest is not earned until the next working day, and even internal transfers are delayed until the next working day.

As far as I'm aware, for tax purposes, HMRC cares only about posting dates and not value dates.