Banks that round balances

macca64

nicko33 wrote: »

maybe 3p per account per month if the balance is rounded when interest is paid monthly
...
I think I agree, but either way I'd prefer to know if they do it

It's actually 3p per account per year before tax. Not worth worrying about if you ask me. My time is more valuable to me than that. I have say 4 accounts so 12p before tax or approx 10p after tax per year. If I wanted to I can make that back by doing some of the daily clicks at Rpoints.

Milarky

Paul_Herring wrote: »

What account do you have that pays 72%?

Yes, there is an arithmetical slip there. With 50p average disregarded balance for 1 month, interest is 0.5% (6% gross) say of 50p - 0.25p only. Twenty five percent of the time this will cause a balance to be rounded down to the nearest penny* which would not otherwise be - so that's still 3p per year

*Assume interest is XX.YYp per month including the average 50p which NW rounds balances down by: 25% of the time 'YY' will be '00-24', '25-49' '50-74' & '75-99'

'00-24' -> '75-99' (Since 'YY' > '50', 'XX-1' pence paid however)
'25-49' -> '00-24' ('XX-1' pence paid)
'50-74' -> '25-49' ('XX-1' pence paid) - This is the only time a different total result
'75-99' -> '50-74' (Since 'YY' > '50', 'XX' pence paid however)

nicko33

Milarky wrote: »

Yes, there is an arithmetical slip there.

oops
fortunately it's only pennies