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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
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.
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