I was just curios to know, now that the new online account/page is up and running - how is the interest reward calculated ? I know in the greater scheme of things it doesn’t amount to much but as they say, every little helps.
I understand that previously, the interest was worked out calculated on the balance carried forward from the last statement. However, unless I’m reading this incorrectly, that balance now decreases on a daily basis as well as on receipt of each reading - in effect a ‘live balance’ - which would be understandable.
Like I say - not a biggy, just curious to know how it now works (if, indeed, it’s changed at all but hasn’t been available to be seen on the previous type of account).
p.s. I hope this is in the correct Category - apologies if not…...
Best answer by Eva_OVO
This is a good question - I’m surprised it hasn’t come up yet! :)
The interest reward is calculated a little bit different to how it is on the old account, you can find out more about the calculation here.
On the new online account, the interest reward is calculated on the day before your Direct Debit is taken using the balance on that day or since it was last updated.
Balance Prior To Payment x (days since Last Calculation ÷ 365) x interest Reward Percentage
I hope this helps!