# Earned less interest with UB eSavings than last month?



## VanZan (1 Sep 2008)

I have an Ulster Bank eSavings account and for the month of July I earned approx €59 interest.

However over the next month (August) I did not make any withdrawals and added more money to the eSavings account. I got my interest yesterday and it was approx €58.

How in the world could the interest be less if I had more money in there!?!?!?!!? I was very disappointed....I thought I would get a little bit more...not much but certainly not less!


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## Tempo (1 Sep 2008)

Noticed that with our two FA eSavings acounts, they made around 2 euro less interest in August. 

Could it be anything to do with the number of days in the month? They paid out on Aug 29th, whereas the last (large) interest payment was July 31st.


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## ClubMan (1 Sep 2008)

If you have a static amount in the account it should be simple to calculate the interest due: amount x (rate / 366 days) (since 2008 is a leap year) x number of days for which interest is being paid. If the balance was fluctuating then it's a bit more difficult. Obviously interest is liable for _DIRT _in most cases.


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## VanZan (1 Sep 2008)

Tempo said:


> Noticed that with our two FA eSavings acounts, they made around 2 euro less interest in August.
> 
> Could it be anything to do with the number of days in the month? They paid out on Aug 29th, whereas the last (large) interest payment was July 31st.



That's it! I didn't notice they paid out on the 29th August. That must account for the difference. I wonder why they paid out early?



ClubMan said:


> If you have a static amount in the account it should be simple to calculate the interest due: amount x (rate / 366 days) (since 2008 is a leap year) x number of days for which interest is being paid. If the balance was fluctuating then it's a bit more difficult. Obviously interest is liable for _DIRT _in most cases.



The rate is 4.4%. So you're saying that should be divided by 366 and then multiplied by the number of days in the month? The figure I got for this was way off what I actually got.


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## ClubMan (2 Sep 2008)

Yes - but multiplied by the actual number of days for which they are paying interest. As _Tempo _pointed out above they may not always be paying for a full calendar month each payment period. Why not just ask _UB _to explain the interest payment calculations?


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## Sunny (2 Sep 2008)

vanzan said:


> The rate is 4.4%. So you're saying that should be divided by 366 and then multiplied by the number of days in the month? The figure I got for this was way off what I actually got.


 
Is 4.4% not the AER? You have to use the gross rate if you are working out 1 months interest


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## ClubMan (2 Sep 2008)

Separate point - why save in a 4.4% _CAR _account when there are much better rates on offer? See the _Financial Best Buys _forum and www.itsyourmoney.ie lists.


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## cork (2 Sep 2008)

Another Seperate point: I am still awaiting €150 bonus for swithing current account.

They keep promising to ring me but never do.

What is my best course of action?


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## ClubMan (2 Sep 2008)

Did you meet all the terms & conditions? If so just get onto them about it. Preferably in writing.


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## GeneralZod (2 Sep 2008)

ClubMan said:


> why save in a 4.4% _CAR _account when there are much better rates on offer?



If you've also got a UB current account transfers to it from the eSavings account are instantaneous. I keep a few grand in mine in case I need it quickly.


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## ClubMan (3 Sep 2008)

A _Halifax _current account pays 10% on up to €2K and a _Flexi Saver _pays  5.15% on up to €10K with transfers between the two instantaneous as far as I recall.


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## VanZan (3 Sep 2008)

Aren't Halifax really strict on who they let open accounts with them? I'm currently, ahem ,"between jobs" and I don't think they'd give me a current account.



ClubMan said:


> Separate point - why save in a 4.4% _CAR _account when there are much better rates on offer? See the _Financial Best Buys _forum and www.itsyourmoney.ie lists.



I know I know but I'm just set up with them. Can I ask what CAR stands for?


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## ClubMan (3 Sep 2008)

I don't know what _Halifax's _criteria are for assessing new current account customers.

_CAR = Compound Annual Rate_. Look it up on www.itsyourmoney.ie or _Wikipedia_.


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## skrooge (5 Sep 2008)

vanzan said:


> Aren't Halifax really strict on who they let open accounts with them? I'm currently, ahem ,"between jobs" and I don't think they'd give me a current account.


 
 I find it hard to believe a bank would turn you away from opening a current account becuase you are between jobs.  Fair enough if you're looking for a loan but surely not a current account.  Perhaps you are thinking fo a credit card application.


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## VanZan (5 Sep 2008)

skrooge said:


> I find it hard to believe a bank would turn you away from opening a current account becuase you are between jobs. Fair enough if you're looking for a loan but surely not a current account. Perhaps you are thinking fo a credit card application.



Maybe you're right but I checked up and they want you to lodge €1500 in the current account per month which too rich for my blood I'm afraid

A question for ClubMan....if you can't understand why someone would be with Ulster Bank for 4.4% then why list it at all in the Best Buys post? Why not just give the best rate and none of the others?


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## ClubMan (5 Sep 2008)

vanzan said:


> A question for ClubMan....if you can't understand why someone would be with Ulster Bank for 4.4% then why list it at all in the Best Buys post? Why not just give the best rate and none of the others?


I don't compile/maintain that key post. But I think the idea is to list a range of accounts with competitive rates *and different terms & conditions* since both must be evaluated when choosing a savings option. For example 10% _CAR _is better than 5% _CAR _but not if the 10% rate requires the money to be locked away for a year while the 5% is on demand and you will need to spend the money in 6 months. Personally I would not save with _UB _at 4.4% but maybe that account suits some people due to some aspects of the _T&Cs _or something else. If it suits you for some reason then fair enough but you have not said that this is the case. In the absence of any evidence that this is the "best" account for your needs I was simply pointing you in the direction of other possibly "better" rates/accounts. Feel free to ignore the suggestions if you like.


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