Chip smart cash ISA not giving correct interest

Dentonn

Transferred my cash ISA to chip's smart cash ISA last month as my interest rate went down with moneybox after 1 year.

Rate I've got on chip's smart cash ISA is 4.45%. transfer date: 27th July, ~£67700. first interest paid: 14th aug (£40.46). it also apparently shows how much interest I will earn and is showing me a sum of £137.60 to be paid out 14th sept. I'm pretty sure I'm meant to be getting well over £200 a month at the stated interest rate with my balance. I can do basic math, or at least find an online calculator for compounding interest, plus I used to with moneybox.

I tried to talk to them via chat but they said 'the interest you're seeing in the app is what you've accrued so far in the app but this will continue to grow each then and will then be paid on the 10th working day of next month' - which doesn't make sense. £40 isn't correct for >2 weeks (27th jul-14th aug) of interest anyway.

Am I misunderstanding something about how the account works?

flying_ferret

Hi Dentonn, the interest is calculated for the calendar month and then paid 10 business days into the following month (see the thread below about their Smart ISA 'catch').

So that first £40 is for the period 27-31 July. And you're now accruing interest for 1-31 August, which will be paid 14 September. Does that make sense?

Woodstok2000

To expand on the above, 4.45% interest is about £8.10 per day. 17 days into August equals 17*8.1 equals about £137