How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask Joshua Your Own Question
Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 30009
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
35043042
Type Your Law Question Here...
Joshua is online now

I did the first direct bank regular saver over the last

Customer Question

I did the first direct bank regular saver over the last year. I paid maximum of £300 a month for 12 months at 2.75%AER/Gross, I have been paid £53.70 interest. I was expecting £99. Can you tell me if this is correct? The bank tell me the 1st month was 68p interest as the money only in 1 mth. Can you advise me ?
JA: Where are you? It matters because laws vary by location.
Customer: Huddersfield West yorkshire
JA: What steps have you taken so far?
Customer: Called them 3 times twice fobbed off, called today, they put me thru to savings account team who gave me this info
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: No maybe its me who does not understand
Submitted: 14 days ago.
Category: Law
Expert:  Joshua replied 14 days ago.

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

For the avoidance of doubt, do I understand correctly from what you say, that you paid £300 over a period of 12 months into the account please rather than as a lump sum? I am certain this is the case based on what you say above

Customer: replied 14 days ago.
No £300 each month total of £3600 over the 12 months
Customer: replied 14 days ago.
No longer need your services
Expert:  Joshua replied 14 days ago.

thank you. I quite understand the basis of your calculation in respect of the interest. However, the interest is calculated at a daily rate based on the amount in the account and therefore because of the way the account works, the full balance was not placed in the account from day one but rather the balance is built up over time. Accordingly, whilst not absolutely accurate, the simplest way to work out the correct amount of interest is on the median balance of the account being £1800 as this is the average of the balance that was held in the account over the 12 month period. This produces a figure of £49.50. as above, this is a simplistic way of working out the correct amount of interest to give you a relatively accurate ballpark figure rather than the correct way which is to produce an amortisation schedule which is what the bank have done which would result in a slightly higher figure. In essence, based on what you say, the bank's figures appear broadly correct and I am sure are exactly correct, if one was to go to the trouble of creating an amortisation schedule.

Customer: replied 14 days ago.
OK thank you
Expert:  Joshua replied 14 days ago.

I'm glad the above answers all your questions for now. If you have any follow up questions please revert to me.

Expert:  Joshua replied 12 days ago.

Thank you again for visiting JustAnswer and see you again in the future I hope.