Earned less interest with UB eSavings than last month?

V

VanZan

Registered User
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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!:mad:
 
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.
 
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.
 
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.
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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.
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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.
 
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?
 
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.
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Is 4.4% not the AER? You have to use the gross rate if you are working out 1 months interest
 
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?
 
Did you meet all the terms & conditions? If so just get onto them about it. Preferably in writing.
 
ClubMan said:
why save in a 4.4% CAR account when there are much better rates on offer?
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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.
 
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.
 
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.
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I know I know but I'm just set up with them. Can I ask what CAR stands for?
 
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.
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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.
 
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.
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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?
 
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?
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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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