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Calculating LOC capitalising interest

Discussion in 'Finance & Banking' started by gotta, 22nd Aug, 2006.

  1. gotta

    gotta Member

    Joined:
    3rd Aug, 2006
    Posts:
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    Location:
    perth
    Hi all; does any one know how to calculate cpaitalising interest in excell.

    I want to chek the banks claculations of interest.


    Also; (I think the answer to this has to be yes) but does anyone know if it's possible to get a LOC that is NOT capitalising interest?


    A bank story; the bank took a big one off lump out of my account with no hint why or what for.

    When I phoned I was told it was a payment ($300.00) for keeping the facility going for another year. This is the second one for this year, Paid the first one at the start, funny how they can do this sort of thing with no explanation on the bank statement.

    Whats to stop anyone in the bank from taking a slurp from my account just for the fun of it and then when (if) I notice it and complain to a lowely operator in a call centre (cos thats where you end up when you phone) just tell me it's a charge for this or that?

    Seems they are not even required by their banking licence to put explanations for deductions on your statement when they take money out your account; unless they just happen to feel like doing it presumably.

    gotta
     
  2. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
    gotta,

    I had a simillar experience with the bank fee. Suddenly there was a charge of $300 in my account.
    I checked my LOC contract with the bank and remembered that to maintain my 2 LOC accounts I agreed to pay $150 a year for each account. It was OK.
    I suggest to check your Contract Schedule or talk to your broker. Mine was an account fee which I forgot that I have to pay annualy.

    :cool: :eek:
     
  3. Redwing

    Redwing Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    476
    Location:
    PERTH..WA
    Just pay the interest component on your LOC as far as i know?
     
  4. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    Hi Gotta

    It would most likely be annual account keeping fees for the facility - something that you would have agree to in your loan contracts when you signed up with the loan.