I just had a fixed term account with them. You would imagine that this would be a simple operation. You open the account for a fixed term at a fixed rate. I would receive correspondence at the start and at the end. Except the correspondence that I received at the end is not matching the correspondence that I received at the start. My gross interest has changed. I would understand my net interest changing with changes in DIRT but not my gross. How can I receive a letter at the beginning saying one thing but at the end saying something else. I have not made any adjustments to the account.
Ignoring the letters for a second, have you manually calculated the net interest payment due? Did it correspond to what you received? This is obviously the most important thing.
Does (amount*AERrate*1.5*(1-.41)) equal what KBC paid you?
I got €1616 net?
Soylent your figure of 1616 is actually correct. Rob has a small error in his formula, he used 2.5 as the interest instead of 2.05. Also KBC use a 360 day interest period therefore the AER of 2.05 actually becomes 2.02 for calculations.
Is this true. Do KBC calculate interest over 360 days per year rather than 365. Surely that is illegal.
As I understand it the basis for calculating AER is legally defined and not available for re-interpretation by individual banks.
Maybe banks can decide how many days there are in a year for themselves and their customers, but it seems most odd.
Thanks for that. That's a relief. Could you just explain the formula you used in words just so that I can use it myself in to the future based on the example. Why does 2.05 become 2.02? Regards
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