Statutory Interest Help!

[JustChris20]

Hi everyone, can you help me out with my calculations please.

I have heard some people tell me that the stat interest is 8% PER MONTH!? Surely this cant be right... is it?

Or is it as i though and 8% per year so it would work out at around 0.66% each month?

Scenario 1 Monthly = Month 1 £100, Month 2 £108, Month 3 £116.64 etc

Scenario 2 Yearly = Month 1 £100, Month 2 £100.66, Month 3 £101.32 etc


HELP! Is either of those right?? :-|:?

[Steward]

You can use Google to search the web using these links below:-

[BankFodder]

It is definitely 8% per annum.

[JustChris20]

Thanks for the reply, so let me get this right....

Month 1 i pay £30 for PPI
Month 2 my £30 is now worth £30.20 (30 x 0.66%) and another £30 is paid so total is now £60.20
Month 3 my £60.20 is now worth £60.60 and another £30 is paid so total owed to me is now £90.60.
Month 4 my £90.60 is now worth £91.20 and another £30 is paid so total owed to me is now £121.20
Month 5 my £121.20 is now worth £121.99 and another £30 is paid to total owed to me is now £151.20.....

and so forth???

Thanks.

[noomill060]

I claimed stat interest against Barclaycard at the contractual rate

They coughed up without a whimper.

£85 in PPI premiums

plus 9 years contractual interest @ 26.9%

plus Stat interest @ 26.9%

[JustChris20]

I claimed stat interest against Barclaycard at the contractual rate

They coughed up without a whimper.

£85 in PPI premiums

plus 9 years contractual interest @ 26.9%

plus Stat interest @ 26.9%

How the hell did you do that!?

But if anyone can clarify if my workings out are right that would be great... thanks.

[alanalana]

How the hell did you do that!?

Yes how the hell did you do that

[noomill060]

Stat interest can be claimed at the rate stated in the contract.

The 8% is for when there is no rate stated

(eg: if you're sueing Dixons because the toaster you bought doesnt work. or your joiner, because the shelves he put up collapsed wrecking your collection of model locomotives.)

[noomill060]

Thats what it says in the small claims guide I got from the Court when I first started all this, so Ive claimed stat interest at the contractual rate in all my claims and everytime they have coughed up without so much as a "yeah, but no but" on this

[noomill060]

I use this to calculate compound interest-

Compound interest calculator

(Saves melting your brain)

[noomill060]

No, you are barking up the wrong tree justchris20, it doesnt work like that.

It compounds monthly, but at an annual rate (ie the rate divided by 12, but its worked out at a daily rate (ie yearly rate divided by 360)

Go work it out using Compound interest calculator

360 day year, 12 compoundings per annum

[JustChris20]

No, you are barking up the wrong tree justchris20, it doesnt work like that.

It compounds monthly, but at an annual rate (ie the rate divided by 12, but its worked out at a daily rate (ie yearly rate divided by 360)

Go work it out using Compound interest calculator

360 day year, 12 compoundings per annum

Wasnt that how i did it though?. The rate (8%) divided by 12 (0.66%) compounded monthly??

[noomill060]

How much interest are you paying on the loan?

This is the figure that are charging you, so you should be using the same.

Why this enthusiasm for 8%?

[noomill060]

Each £30 needs to be looked at as an individual "wrong" they have done against you, so should be worked out from the date it was made until the date it is repaid to you

Calculate the interest from the date of each until no, then add up all the totals.

The Compound interest calulator will do all the hard work fot r you.

Make a note of each result, then add them up.