New Egg Account offer

Lokolo

Well I've always earnt interest from the day it showed up into the account and had daily compounding. Never had anything wrong with my interest

Milarky

Dagobert wrote: »

I just received my interest payment and am trying to check their calculations. Unfortuantely, there is a £10 discrepancy. Before I fire off a secure message, I'd like to check whether I overlooked anything.

I too checked the interest received recently and the 'rate' came out at more like 6.18% than 6.30%. I don't think this was affected by the 6.05% rate originally applied so for some reason Egg seems to have paid interest at a slightly lower rate than advertised.

Dagobert

Milarky wrote: »

I too checked the interest received recently and the 'rate' came out at more like 6.18% than 6.30%

Mine works out at 6.23%.

Have you contacted them yet?

Milarky

Dagobert wrote: »

Mine works out at 6.23%.

Have you contacted them yet?

No. I didn't think it worth it for the less than 2% difference in the amount received...

rb10

Egg's interest calculation is odd - they say interest is calculated on a daily compound basis. But this would imply that the AER should be different to the gross rate, which is isn't. (e.g. if it was 6.3% AER, then that would only require a gross rate of 6.11% gross, with daily compounding). Could it be something to do with this?

pre123

Milarky wrote: »

http://new.egg.com/visitor/0,,3_11095--View_162,00.html

It seems to be an ING-like offer: limited offer - fixed rate for 12 months 6.05% - can be operated just like their standard savings account (I think!) - open with £1, put more in as available - cant' use 'existing funds' (from another Egg account)

I can't see an obvious 'catch' here as it is easy to open an extra account with £1. Any money held in other Egg accounts can simply be withdrawn out to another bank and redeposited for this rate surely? 'Limited' seems to apply only to the time this account will be offered.

just checked the link its now paying a whopping 2.50% gross pa :rotfl::p

Lokolo

rb10 wrote: »

Egg's interest calculation is odd - they say interest is calculated on a daily compound basis. But this would imply that the AER should be different to the gross rate, which is isn't. (e.g. if it was 6.3% AER, then that would only require a gross rate of 6.11% gross, with daily compounding). Could it be something to do with this?

Ha yeh I thought but the AER should be more. I've always worked out that the gross is the daily compound rate so the rates they say and give are different, but work out best for us

Baldur

pre123 wrote: »

just checked the link its now paying a whopping 2.50% gross pa :rotfl::p

Only to accounts opened since 11th October 2008 - those who opened the account between 8th May and 10th October are receiving a rate of 6.30% gross pa fixed for 12 months, if you check the interest rates.

oldfella

they say interest is .. 6.30% gross pa/AER fixed for 12 months

this would presumably mean applied daily, compounded annually ?

Baldur

oldfella wrote: »

they say interest is .. 6.30% gross pa/AER fixed for 12 months

this would presumably mean applied daily, compounded annually ?

http://new.egg.com/visitor/0,2388,3_11097--View_165-bID_SavIntFAQ-dva_1,00.html#howismyinterestcalculated?