Sainsbury's savings and interest payment, I don't understand..

fimonkey

Hi All,

Can someone explain what the following means in terms of my account please? I did open my account post April 2007 (Actually was May 2007) and have therefore not received any interest this year on a balance of 2K. ON the website, the message says

"Just received your certificate of interest?
If you have received your certificate of interest and it does not show any interest earned. This may be because you have opened the account after 6 April 2007 and your annual interest payment was not due in the last tax year."

1. Does this mean I haven't earned interest for the past year? ( I hope not!)
2. If I have eraned interest, where is it? When will this interest be paid?
3. Finally, I'm looking to close this account and move 2k to an account with a better interest rate, what will happen to the interest they haven't yet paid when I close the account?

Many thanks in advance.

Baldur

1. No - the form is basically a certificate for taxation purposes, showing the interest earned and tax deducted from it in the relevant tax year.
2. Should be sitting in your account, unless you have told them to pay it into a different account.
3. The interest should be paid up to the date of account closure and included in your cheque for the closing balance.

Dan29

Interest is calculated daily and paid annually on the anniversary of account opening, so you'll get it in May exactly a year after you opened the account.

If you transfer the money to another account now, you'll get the interest next month and can then transfer that to the new account too.

If you close the account before the anniversary, you'll get the interest when you close it.

Paul_Herring

fimonkey wrote: »

1. Does this mean I haven't earned interest for the past year? ( I hope not!)

No - it means you've had no interest actually credited to the account between April '07 and April '08. Sounds like an account where interest is paid yearly, and it's not due yet.

2. If I have eraned interest, where is it? When will this interest be paid?

Still accruing. Probably on anniversary of account opening, or on closure, whichever happens first.

3. Finally, I'm looking to close this account and move 2k to an account with a better interest rate, what will happen to the interest they haven't yet paid when I close the account?

It'll be credited on closure.

KiKi

fimonkey wrote: »

Hi All,

Can someone explain what the following means in terms of my account please? I did open my account post April 2007 (Actually was May 2007) and have therefore not received any interest this year on a balance of 2K. ON the website, the message says

"Just received your certificate of interest?
If you have received your certificate of interest and it does not show any interest earned. This may be because you have opened the account after 6 April 2007 and your annual interest payment was not due in the last tax year."

1. Does this mean I haven't earned interest for the past year? ( I hope not!)
2. If I have eraned interest, where is it? When will this interest be paid?
3. Finally, I'm looking to close this account and move 2k to an account with a better interest rate, what will happen to the interest they haven't yet paid when I close the account?

Many thanks in advance.

The certificate of interest and accompanying letter that you would have received says that if you haven't received interest this year, it's because the interest is paid annually and is payable on the anniversary of opening the account. Therefore you haven't had the account open for one year, yet.

If you opened it in May last year, you'll get the interest paid in May.

If you close the account, you'll get the interest pro-ratad.

KiKi

fimonkey

Cheers all, makes perfect sense when given to me in plain English from you guys!