Halifax Clarity Card 'interest'
Comments
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Received June 2018 statement today. No trailing interest. Presumably this is because I had paid off the full balance immediately?If you carried a balance forward from your previous statement then you'd presumably have an interest charge applied to the current statement, but I don't see this on your extracts. Is it possible that some of the £1.68 relates to trailing interest, even though it seems to be attributed to cash?
On the May 2018 statement it said 'estimated interest = £2.35. Is this the amount of interest I would have paid, if I just paid the minimum payment (which was £5.00).
Also, could 'trailing interest' apply if I had paid the full balance but at a later time between 16 May 2018 (May 2018 statement issue) and 17 June 2018 (June 2018 statement issue). For example, if I paid off full balance on 10 June 2018.0 -
YesOceanSound wrote: »Received June 2018 statement today. No trailing interest. Presumably this is because I had paid off the full balance immediately?
Probably. I always ignore the estimated interest as it's based on some assumption or other.On the May 2018 statement it said 'estimated interest = £2.35. Is this the amount of interest I would have paid, if I just paid the minimum payment (which was £5.00).
Yes, like I said above it would have been 7p a day. Also it's possible that you'd have been charged a few p interest the following month, since the interest charged this month would start accruing interest from the statement date. But this would only have been a few p at most.Also, could 'trailing interest' apply if I had paid the full balance but at a later time between 16 May 2018 (May 2018 statement issue) and 17 June 2018 (June 2018 statement issue). For example, if I paid off full balance on 10 June 2018.0 -
I have another interesting question. This is to do with the M&S Bank Credit card. Did try to PM you but it says your inbox is full. Anyway, as this relates to interest I will post the question below, so others can see/respond:YesProbably. I always ignore the estimated interest as it's based on some assumption or other. Yes, like I said above it would have been 7p a day. Also it's possible that you'd have been charged a few p interest the following month, since the interest charged this month would start accruing interest from the statement date. But this would only have been a few p at most.
I had three cash transactions totaling £1510 on my August M&S Bank credit card statement. HEre are the details:
28 July 2018 Transferwise £10
31 July 2018 Transferwise £500
09 August Transferwise £1000
On 24 August my statement was produced and it had £17.08 interest for the above transactions. I've done the calculation and this part matches the interest figure on the statement (just 1p off). BTW, M&S Monthly cash transaction interest rate=1.805%
(10x27 + 500x 25 + 1000x16) = 28770 x (0.01805x12/365) = £17.07
So, I paid a total of £1527.08 (three transactions + interest) on 31 August. Come the September statement it has interest of £5.88.
Again, doing the calculation, as above, my figure turns out to be £6.27:
1510x7 x (0.01805x12/365) = £6.272238
Am I missing something?0 -
Should be interest on £1527.08 from 24 Aug as the interest will start accruing interest. But even then it makes no sense. They seem to have charged you 6.5 days interest, maybe they charge in half days? Never heard of any bank doing that...OceanSound wrote: »I have another interesting question. This is to do with the M&S Bank Credit card. Did try to PM you but it says your inbox is full. Anyway, as this relates to interest I will post the question below, so others can see/respond:
I had three cash transactions totaling £1510 on my August M&S Bank credit card statement. HEre are the details:
28 July 2018 Transferwise £10
31 July 2018 Transferwise £500
09 August Transferwise £1000
On 24 August my statement was produced and it had £17.08 interest for the above transactions. I've done the calculation and this part matches the interest figure on the statement (just 1p off). BTW, M&S Monthly cash transaction interest rate=1.805%
(10x27 + 500x 25 + 1000x16) = 28770 x (0.01805x12/365) = £17.07
So, I paid a total of £1527.08 (three transactions + interest) on 31 August. Come the September statement it has interest of £5.88.
Again, doing the calculation, as above, my figure turns out to be £6.27:
1510x7 x (0.01805x12/365) = £6.272238
Am I missing something?0 -
My September Clarity card statement (issued 16 September 2018) had a balance of £264.71. This was for 4 cash withdrawals (£66 GBP x 4) done on 13 September (posted on 14 September) + £0.71 interest.
Payment due date was 11 October, However I paid the £264.71 on 15 September and cleared the full statement balance.
On 02 October 2018 I made a purchase for £77.23. Then on 09 October made 2 cash withdrawals amounting to £198.24.
My question is if I pay the cash withdrawal total £198.24 on 16 October 2018 (the statement issue date), will that payment be allocated towards the cash withdrawals? I presume it does.
Does the need for clearing the balance + the cash transactions only arise if the cash transactions were done on 15 October (so they don't quite make it to the latest statement - as they will still be pending) or cash transactions done on or after 16 October.0 -
YesOceanSound wrote: »My September Clarity card statement (issued 16 September 2018) had a balance of £264.71. This was for 4 cash withdrawals (£66 GBP x 4) done on 13 September (posted on 14 September) + £0.71 interest.
Payment due date was 11 October, However I paid the £264.71 on 15 September and cleared the full statement balance.
On 02 October 2018 I made a purchase for £77.23. Then on 09 October made 2 cash withdrawals amounting to £198.24.
My question is if I pay the cash withdrawal total £198.24 on 16 October 2018 (the statement issue date), will that payment be allocated towards the cash withdrawals? I presume it does.
Yes, statemented purchases will get paid before unstatemented cash advances.Does the need for clearing the balance + the cash transactions only arise if the cash transactions were done on 15 October (so they don't quite make it to the latest statement - as they will still be pending) or cash transactions done on or after 16 October.0 -
Is this because the interest rate for cash transactions and purchases are the same?Yes, statemented purchases will get paid before unstatemented cash advances.
If the purchases interest rate was lower, would I be still paying off the previous months purchases ahead of the current month's cash advances?0 -
No. It's because statemented transactions get paid before unstatemented.0
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Not if you have an M&S credit card. Had £1600 worth of 0% purchases transactions in July statement. In August statement, more 0% purchases + 3 cash transactions (worth £1510).Deleted_User wrote: »No. It's because statemented transactions get paid before unstatemented.
Those three cash transaction accrued interest of £17.08. See: post #34
I paid £1527.08 and that cleared the cash transactions + interest.
Tesco clubcard credit card is a different story through. If even a small cash transaction manages to sneak through (on a card where you've got a big 0% purchases balance), it means paying the purchases transactions balance (statemented balance), then only will you be able to clear the cash transaction balance.
I can see this being a pain in the neck if you don't know how a transaction is going to be classified (to begin with). i.e. cash or purchase.0 -
pochisoldi wrote: »Before we start
1) Do not pay off a cash withdrawal until it actually debits your account. (aka do not pay off a pending transaction)
2) It's cheaper to withdraw cash Sunday-Thursday. Otherwise it takes longer for the account to be debited, and you pay more interest while you are waiting.
Paying it off
1) Wait until the Halifax mobile app/website tells you that the cash withdrawal has actually been debited.
2) Make the payment. This should be for
a) The previous month's balance plus the cost of the cash withdrawal (if you haven't already paid off the card)
b) the cost of the cash withdrawal, (if you've already paid off last month's balance)
My case is not exactly same, but this thread helped me understand what would happen to me; Halifax credit card gave me 0% cash transfer with 4.9% interest, I have used this money transfer and paid back immediately (the same amount of the money transfer) with another 0% BT credit card. But I was charged a small interest.
The Purchase has an interest free period, but Money Transfer hasn't, and any payment will be used against Purchase first. As @pochisoldi said, unless you paid in full just after Money transfer is recorded, all remaining amount is treated as money transfer with 4.9 % interest (in my case). Well it is tricky, but still logical. I now understand how system works clearly.
Terms and condition said, if the same interest, the payment against cash transaction is first, in this case, we have to pay only the amount of cash transaction ? I am not sure if this is applicable to your case, but it is very confusing..
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