Becareful.. NTB Loan/Deposite Calculations

Real Example 1


Bank: Nation Trust bank
Deposit Amount Rs.155
Period: 7 days
Rate: 7%

Dear Friends...
Please calculate and tell me what the interest at the maturity(7 days)....
Thanks You

nkuda wrote:((155 * (7/100))/365) * 7 = 0.21

0.21? Sure?

This is not the amount NTB Paying

That is why we have to tell now Don't Trust Nation Trust

How much do they pay and what is their explanation ?

Whitebull wrote:How much do they pay and what is their explanation ?

No explanation yet...
they paid less than 0.21

Probably there is a WH tax 10% so the value is 0.19

If they do not give reasonable,valid explanation,I think,U can make a complain to central bank.

The amount is less than minimum balance requirement. So rather than paying interest they may have charge you some amount.

hariesha wrote:The amount is less than minimum balance requirement. So rather than paying interest they may have charge you some amount.

I think this amount is taken as an example.....Hope real value is 10000 or 100000times

Whitebull wrote:

hariesha wrote:The amount is less than minimum balance requirement. So rather than paying interest they may have charge you some amount.

I think this amount is taken as an example.....Hope real value is 10000 or 100000times

Well said.... there are many "0" deleted

I think it depends on the type of Deposit also. For example if the deposit is a Short Term Call Deposit, NTB pays Interest based on Money Market Rates.

The below from NTB website..... regarding Short Term Call Deposit;

Minimum of 7 days and after that can be liquidated at any time.
Interest paid on daily available balance.
Floating interest based on money market rate will be paid.
This can be maintained in the form of RFC (Sole/Joint) or NRFC (Sole/Joint).

greedy wrote:I think it depends on the type of Deposit also. For example if the deposit is a Short Term Call Deposit, NTB pays Interest based on Money Market Rates.

The below from NTB website..... regarding Short Term Call Deposit;

Minimum of 7 days and after that can be liquidated at any time.
Interest paid on daily available balance.
Floating interest based on money market rate will be paid.
This can be maintained in the form of RFC (Sole/Joint) or NRFC (Sole/Joint).

Then within 7 days It cant be changed

I again telling... dont trust Nation Trust

SL.Market wrote:

greedy wrote:I think it depends on the type of Deposit also. For example if the deposit is a Short Term Call Deposit, NTB pays Interest based on Money Market Rates.

The below from NTB website..... regarding Short Term Call Deposit;

Minimum of 7 days and after that can be liquidated at any time.
Interest paid on daily available balance.
Floating interest based on money market rate will be paid.
This can be maintained in the form of RFC (Sole/Joint) or NRFC (Sole/Joint).

Then within 7 days It cant be changed

I guess/my understanding is that the deposit needs to be maintained at least for 7 days and interest will be calculated based on the Daily Money Market Rates.

Anyway they should give a proper explanation when a customer asks.If they fails it is either their pathetic level of customer service or some sort of fraud.

Whitebull wrote:Anyway they should give a proper explanation when a customer asks.If they fails it is either their pathetic level of customer service or some sort of fraud.

This is fraud.... When I going to place FD many From NTB asked me I can offer this rate bla bla..
it is due to just calling to them and expressing my requirements...
But in this case no one answer

SL.Market wrote:Real Example 1


Bank: Nation Trust bank
Deposit Amount Rs.155
Period: 7 days
Rate: 7%

Dear Friends...
Please calculate and tell me what the interest at the maturity(7 days)....
Thanks You

your account having balance below 500rs,so they deduct 50rs per month as i know,i think they giving rate below when having minimum balance or they may have calculated the rate after deduct the 50rs

mark wrote:

SL.Market wrote:Real Example 1


Bank: Nation Trust bank
Deposit Amount Rs.155
Period: 7 days
Rate: 7%

Dear Friends...
Please calculate and tell me what the interest at the maturity(7 days)....
Thanks You

your account having balance below 500rs,so they deduct 50rs per month as i know,i think they giving rate below when having minimum balance or they may have calculated the rate after deduct the 50rs

Malaya, read the thread properly!

This is something I noticed for sometime and still the issue is not fixed

https://i.servimg.com/u/f43/17/53/17/14/fixed_12.jpg

The rate they say for monthly deposit is 2.5% . When you look at the calculation, they give Rs 24.59 for Rs 10,000 which is 0.24% per month. So there is an error here. They are giving 2.5% a year. I think the system is not updated since who would put a fixed deposit for 2.5% a year when you can get double that keeping in a saving account and 13% on the same bank for annual fixed deposits.

Also there is lot of information on the deposit option drop down which can not be used . Please see https://i.servimg.com/u/f43/17/53/17/14/fixed_14.jpg

We can not convert Rs to $ an invest (I wish it was simple as that!)

So system should improve hell of a lot to remove the unwanted junk as well.

This is from my personal account screenshots.

For my business account waiting for 2 months for internet banking to be fixed. Gone to the bank twice with the documents and they say all good but still nothing. So like someone said very poor customer service which is evident with all customer service related businesses in SL (although I have had no issues with HSBC)

U CAN COME TO A CONCLUSION.................

CSE IS BETTER THAN NTB

NTB BETTER THAN GOLDEN KEY

SL.Market wrote:

Whitebull wrote:Anyway they should give a proper explanation when a customer asks.If they fails it is either their pathetic level of customer service or some sort of fraud.

This is fraud.... When I going to place FD many From NTB asked me I can offer this rate bla bla..
it is due to just calling to them and expressing my requirements...
But in this case no one answer

Well machan why don't YOU answer the questions that we asked you? What was the amount that you received, what was the type of the deposit, what was the advertised rate? You can't say there are many zeros missing and then leave it at that, it depends on what exactly the number is. Also note that since this is a leap year, they can do the calculation as 7/366*7/100. That would give you .2075 for 155 without any deductions.

For FDs, the legal clause is that the bank has the right to change the interest rate that was advertised at the start of the FD even during maturity. E.g. if you have a 5 year FD for 11.5%, and 2 years after you get in to it the rates fall to 6%, the bank can amend the rate as well. This has been done by BoC as well

For Call Deposits, it is the daily money market rate applied at the end of each day. Therefore the rate WILL change.

DK wrote:

SL.Market wrote:

Whitebull wrote:Anyway they should give a proper explanation when a customer asks.If they fails it is either their pathetic level of customer service or some sort of fraud.

This is fraud.... When I going to place FD many From NTB asked me I can offer this rate bla bla..
it is due to just calling to them and expressing my requirements...
But in this case no one answer

Well machan why don't YOU answer the questions that we asked you? What was the amount that you received, what was the type of the deposit, what was the advertised rate? You can't say there are many zeros missing and then leave it at that, it depends on what exactly the number is. Also note that since this is a leap year, they can do the calculation as 7/366*7/100. That would give you .2075 for 155 without any deductions.

For FDs, the legal clause is that the bank has the right to change the interest rate that was advertised at the start of the FD even during maturity. E.g. if you have a 5 year FD for 11.5%, and 2 years after you get in to it the rates fall to 6%, the bank can amend the rate as well. This has been done by BoC as well

For Call Deposits, it is the daily money market rate applied at the end of each day. Therefore the rate WILL change.

It is a 7 days call deposit at a rate of 7% (you can call today and ask from NTB for confirmation)
I deposited it only for 7 days
The amount is Rs.155 multiple of some thousands

Interest for 7 days is 0.190...
They are not able to explain the final figure....
What a poor bank NTB

So it should be 0.19
Isn't it?

With -10% WHT

Or else what it should be????

hunter wrote:So it should be 0.19
Isn't it?

With -10% WHT

Or else what it should be????

2.5% of WHT is applied...


WHT 2.5% calculation should be...

(155x7/100x7/365)x0.975=0.202


IF WHT 10% calculation should be...

(155x7/100x7/365)x0.9=0.187


That means what ever the WHT percentage applied I can say Nation trust Bank's Calculation Is wrong

It is a 7 days call deposit at a rate of 7% (you can call today and ask from NTB for confirmation)
I deposited it only for 7 days
The amount is Rs.155 multiple of some thousands

Interest for 7 days is 0.190...
They are not able to explain the final figure....
What a poor bank NTB

Reverse calculating from the number that you have given:
0.19 for 7 days means for 365 days = 9.9071
Percentage rate based on principal = 9.9071/155*100 = 6.391

So yes, there is a clear mismatch. But refer http://www.inlandrevenue.gov.lk/publications/circulars/WHT%20on%20interest%20paid%20by%20banks%20or%20other%20financial%20institutions2011.pdf. That gives you the applicable deduction rates (section 3). The Call Deposit may qualify under CDS, if so it is 10%. That means 6.3% is the effective rate.

If this is not the case and if you actually have deposited 155 multiple of some thousands, why dont you just walk in and talk to the manager? I am sure that they would be concerned about a customer at that rate? I once deposited a 2.5million and they sent a guy home when I wanted the withdrawn money delivered.

P:S:
I just saw your reply. Surely you are not saying that you received a round number of .19*many thousands? Even going by your own numbers, if you deposited 155,000 you would get 208.08. If you deposited 1,550,000 you would get 2080.82 etc. How did you end up with a round number??

DK wrote:
But refer .inlandrevenue.gov.lk/publications/circulars/WHT%20on%20interest%20paid%20by%20banks%20or%20other%20financial%20institutions2011.pdf. That gives you the applicable deduction rates (section 3).

This is another problem with our banks.They do not explain all the terms to the customer.They tell only the things that beneficial to the customer.

Yes there is a agreement but almost all the time they are in english(sometime with technical words).At least those agreements should be in customers preferable language(sinhala,tamil or english) and in simple terms.And a copy should be given to the customer also which is not happening here.