Skipton and leap years

Vortigern

"Interest is calculated daily" - but some days you get 0%

intalex

Just means their systems keep using a denominator of 365 rather than 366 during a leap year, and for Feb they count max 28 days...

eskbanker

nottsphil said:

Vortigern said:

"Interest is calculated daily" - but some days you get 0%

I'm presuming that was a joke but for those not so sure, you get one 366th of the annual rate every day instead of the one 365th you get in non-leap years. 

That's not what Skipton appear to be saying in the wording quoted by OP....

SnowMan

From the actual Skipton Savings Account terms and conditions pdf e.g. at the bottom of this page, rather than in the explanation of what has changed

https://www.skipton.co.uk/savings/regular-saver-accounts/member-regular-saver

So it is a case you get 1/365 of the annual rate for every day except 29th February (so 1/365 for every day of a non leap year, and 1/365 for every day of a leap year except 29th February)

I've never come across this way of doing it before.

But as mentioned if that is consistent with how they treat borrowers that's fair enough.

To put this in context you lose a days interest every time you withdraw money from say a West Brom savings account into an account with another building society or bank.

subjecttocontract

The sums of money involved are surely so small that even MSE members can't get overly excited. £10,000 @ 6% = £1.64 a day. 

Middle_of_the_Road

subjecttocontract said:

The sums of money involved are surely so small that even MSE members can't get overly excited. £10,000 @ 6% = £1.64 a day. 

That's a huge amount compared to other instances I've seen where efforts have been made to secure lesser sums.

intalex

Continuous improvement and optimisation is a way of life for some...

gt94sss2

It does mean that Skipton will effectively be paying slightly more interest on the other 365 days, then those organisations which use a 366 day leap year.