What is the OVO Interest Reward - your guide
The OVO Interest reward is in place to reward customers who keep their account “healthy” and in credit.
The current annual rate of reward is 3% for the 1st year a customer is with us, increasing to 4% in the second year and then 5% for the 3rd year and following years. The tiered Interest Reward was introduced on 30/06/2017.
Every time a statement is produced for the account, interest earned for the period is calculated and added to the bill. If the account balance is not in credit no interest will be awarded. Interest is only calculated and awarded on the credit balance up to £1000.
How is the Interest Reward calculated?
The OVO interest reward is calculated the day before a Direct Debit is taken using the balance on that day.
This is the calculation of how the OVO Interest reward is worked out:
"(days since Last Calculation / 365) * Balance Prior To Payment * interest Reward Percentage"
You have a balance of £100 when your previous Direct Debit was taken. Your last payment was taken two days ago and your level of OVO interest reward is 5%.
= 2(days) /365 x £100 x 0.05 (interest percentage) = £0.027 (rounded up to £0.03)
Where can I see this OVO Interest reward payment?
The interest reward payments will show in the ‘Charges’ section of your online account, shown here:
Why can I see a low Interest Reward amount for the month after I went onto the new billing platform?
This is because in the first month of being on the new online account/billing platform, the OVO Interest reward is calculated from payment to payment and not for a calendar month, so you might have your first OVO interest reward payment calculated just a couple of days after being migrated.
How is the OVO Interest Reward calculated if I’m on the old billing platform:
The OVO interest reward is calculated using the credit balance brought forward from the previous statement.
That’s it for our guide on the OVO Interest Reward. Missed something? Let us know in the comments section below!