Natwest interest rate error
Comments
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I have not been able to find any mention of the calculation period. Are you able to post a link to this?
All I have seen is this, which makes no mention of the calculation period only the period for adding the £50.
To earn interest each month, your balance must grow by at least £50. Our monthly interest cycle runs from close of business on the second-last business day of one month, to close of business on the second-last business day of the following month0 -
I have also seen the following which I took to mean that the interest was calculated up to the day before the first business day
Interest is calculated daily and paid on the first business day of the month and at account closure. You will be able to see and access the interest in your account on the following day.0 -
For the period between the close of business on the second last business day of the month and the first business day of the following month, how do they know what interest rate to pay? The monthly interest period for which those days fall in is ongoing. Surely the interest payment period should align with the period for which the conditions for the applicable interest rate is calculated?
I thought this account was convoluted enough, but it seems it is even more convoluted. It should be a case study for how not to design a savings product. So glad I have no need for this account.Did you really mean to put loose?
Lose: no longer possess, not to retain, unable to find
Loose: not firmly or tightly fixed in place0 -
Can't argue that the conditions are crazy but 1.50% is the best instant access rate available.AirlieBird wrote: »I thought this account was convoluted enough, but it seems it is even more convoluted. It should be a case study for how not to design a savings product. So glad I have no need for this account.
I assume from your statement that you have no cash deposits earning less than 1.50%.0 -
As a new user to the forum I am apparently not allowed to post links. However, what you have quoted (RG) is what I am referring to. I.E. 'The monthly interest cycle runs from ...'. What this means to me is that for every day during the interest cycle 1 day's interest is calculated. At the end of the cycle all of those values are totted up and then paid out on the 1st BD of the following month. Anything after the end of one month's cycle forms part of the next monthly cycle (if you'll pardon the expression). Having said all that, it is true (as you say RG) that I received 33 days interest in April when the interest cycle was only 29 days long. I'm just going to wait and see what NWB comes up with because it is clear to me that they are doing something different to what they have published.0
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LIGHTBULB MONENT!!
May have cracked it. NWB changed the terms of the savings builder account on 3/4. So, my guess is that they extended their interest cycle for the April interest calculation from the published 29 days to take it up to the end of the old T&Cs at COB on 2/4. This would make it 33 days long. Thus the next interest cycle for payments in May ended up shorter as it didn't start until 3/4 in line with the new T&Cs. This means that from next month onward we should all be able to rely on the interest cycle being as stated and interest payments made will only relate to interest calculated during that cycle. Phew! I'll still wait until NWB confirms this before letting them off the hook. Thanks to everyone for all the views and opinions though.0 -
Can you confirm the dates and number of days you are expecting in next month's cycle please.Terry_Towelling wrote: »This means that from next month onward we should all be able to rely on the interest cycle being as stated and interest payments made will only relate to interest calculated during that cycle.0 -
I can give it a go.
2nd last BD in April is 27th. So the interest-calculation-cycle starts (and includes) 28th. The end of the cycle will be COB on 30th May. So the period will be 28/4 to 30/5 inclusive and amounts to 33 days. The interest will be credited to my account on Friday 1/6 and available from Saturday 2/6.
The only difficulty calculating the value of the interest comes if your credits fall near the ends of the cycle because NWB also says that COB is different for in-branch, online and postal - but they don't say how they differ. If you pay in away from the extremities it's an easy calculation.
If your balance is under £5K and you pay in £50 in one lump and do it on day 1 of the cycle you'll get 1.5% of the opening balance + about 6p or 7p. That's the most you would expect. The least would be a mere fraction over 1.5% of the opening balance if you paid once in at the end of the cycle.
The suspense is killing me; I can hardly wait until 1/6! Hmmm0 -
Okay thanks.
I agree with you calculations for 33 days and the payment date of 1st June
However, I am expecting 31 days so let's see what happens on 1st June which probably won't be visible online until 2nd June.0 -
As a matter of interest which two days are you discounting? 28th and 29th April presumably.0
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