Hodge Banking

wsm18

This week Martin suggested Hodge Banking Easy Access saving account offering 4.21%.
So I went to their web page which confirmed this and registered an account.
However, the account, when registered showed 4.13%.
I have emailed them requesting an explanation.
Has anyone else had a similar experience?

x44

4.13% when paid out each month (ie 4.13/12= 0.3416666%) and compounded each month is the same as 4.21% paid as a single annual interest payment.

So the AER is correctly quoted as 4.21% and the nominal monthly rate is correctly quoted as 4.13%

wsm18

Well, I hadn't looked at it that way. But just about every other website I have looked at the quoted interest rate on the front page is the same as that shown against the account.
That way there is less room for confusion.

MyRealNameToo

APR/AER are defined terms and the FCA stipulates how these should be calculated in the theory that it makes it easier for people to compare products. APR in particular has to include fees and assumes £1,200 borrowing, several high fee credit cards make a big thing about why their super prime card has a 688.5% APR whereas based on interest alone they would 24.9% or something more normal. 

UK regulated business dont have a choice, they have to display AER/ APR as appropriate. Unfortunately not everyone is good at maths or understand concepts like compounding interest or that interest is calculated daily but applied monthly etc. To avoid a load of phone calls as to why the interest applied is 4.13% for this month rather than 4.21% then they often will show the interest rate at the frequency its paid so people can check simply for themselves 

Its not limited to them, Halifax https://www.halifax.co.uk/savings/easy-access.html also shows you both the simple monthly interest and the AER 

SnarkyPuppy

wsm18 said:

This week Martin suggested Hodge Banking Easy Access saving account offering 4.21%.
So I went to their web page which confirmed this and registered an account.
However, the account, when registered showed 4.13%.
I have emailed them requesting an explanation.
Has anyone else had a similar experience?

I was looking at this too. Just wanting to check did you need a Passport or Driving Licence to sign up to this?

Ocelot

SnarkyPuppy said:

wsm18 said:

This week Martin suggested Hodge Banking Easy Access saving account offering 4.21%.
So I went to their web page which confirmed this and registered an account.
However, the account, when registered showed 4.13%.
I have emailed them requesting an explanation.
Has anyone else had a similar experience?

I was looking at this too. Just wanting to check did you need a Passport or Driving Licence to sign up to this?

I didn't. In fact I've never had to use a Passport or Driving Licence to sign up to any account.