How do you interpret "Interest is paid annually" for a savings account?

Ulrich

Hi All, 

A quick question - if you're about to open a savings account like this one today and it says "Interest is paid annually" here, when would you expect it to be paid next time?

Placitasgirl

Interest would normally be paid annually on the "anniversary" of account opening. The text on the website says "You’ll be able to see and access the interest in your account on the following day. ", 

So if you'd opened your account on 1 November, I'd expect interest to be "paid" on 1 November the following year, and  visible/available in your account on 2nd November, provided these were "business" days (ie not a Saturday or Sunday).

la531983

Given the examples in part 3 of that page are based on the funds being in for 12 months, I would suggest the interest is paid on the 12 month anniversary of the account, and then the same date thereafter.

Doesn't suggest anywhere it will be done on, say, the end of the tax year. 

Flugelhorn

On the annual date when they pay interest ie:

"Loyalty Saver Information Sheet An instant access savings account that pays interest annually on the first business day in January each year."

wmb194

Ulrich said:

Hi All, 

A quick question - if you're about to open a savings account like this one today and it says "Interest is paid annually" here, when would you expect it to be paid next time?

It should tell you specifically in the terms and conditions.

Flugelhorn

January

https://www.ulsterbank.co.uk/content/dam/Ulster/documents/ni-region/permanent/personal/savings/ubn-pers-savings-account-rates.pdf

Ulrich

Yeah, exactly - it's January IF you read T&Cs but "at the glance" there's nothing about January so it's really misleading to my liking because it should be "first banking day in January", definitely not annually.

wmb194

Ulrich said:

Yeah, exactly - it's January IF you read T&Cs but "at the glance" there's nothing about January so it's really misleading to my liking because it should be "first banking day in January", definitely not annually.

It's annually in January.

slinger2

wmb194 said:

Ulrich said:

Yeah, exactly - it's January IF you read T&Cs but "at the glance" there's nothing about January so it's really misleading to my liking because it should be "first banking day in January", definitely not annually.

It's annually in January.

Surely it's annually FROM January.

masonic

Ulrich said:

Hi All, 

A quick question - if you're about to open a savings account like this one today and it says "Interest is paid annually" here, when would you expect it to be paid next time?

If I see that, without qualification, then I'd expect interest to be paid once every year. If they say "anniversary" then it would be at the end of each account year, otherwise it would be on a specific date each calendar year as specified elsewhere.

In general, the terms month, monthly, year, annually, etc refer to calendar months and years unless otherwise specified.

Ulrich

masonic said:

Ulrich said:

Hi All, 

A quick question - if you're about to open a savings account like this one today and it says "Interest is paid annually" here, when would you expect it to be paid next time?

If I see that, without qualification, then I'd expect interest to be paid once every year. If they say "anniversary" then it would be at the end of each account year, otherwise it would be on a specific date each calendar year as specified elsewhere.

In general, the terms month, monthly, year, annually, etc refer to calendar months and years unless otherwise specified.

Well, it's definitely once a year.
The thing is no "anniversary" or a specific date given - that's what I find misleading.
I'd accept "annually on X of January" (or similar) or "the first working day of each (calendar) year" but that's not what they use.
And as you can see, a lot of people fall to that.