Green Energy Investment Account is live

Thanks sl75 for your long explanation, I can see how it works now.

Aside from rounding effects, or AC forgetting to make the appropriate subtractions for the Provision Fund, I can't work out how the result actually could turn out to be more than 7.23% (being 7% p.a. paid monthly and compounded for a year).

Does anyone else have any ideas?

PS.  Is there any chance that AC's accrued interest calculations are based on the nominal rate for the loan rather than 7%?

no units of 83 showing as available.

Thanks Ton ⓉⓞⓃ and unmadem

Loan is enabled
I have had the following for sale for the last 4 weeks -

Loan name       
[MLIA] B W T    13.91
[GEIA] B W T    24.31
Grand Totals:    38.22

looks like we need a Navy style fix on the WT computer - turn it off and on again

best regards
Dave

I emailed Friday evening
chris it looks like #90 is broken as well (88.54 MLIA + 88.54 GEIA)
in both cases I had sales at of November, and no sales since

best regards
Dave

westcountryfunder:  Thanks for sharing this with us.

How are you determining your accrued interest?  I can't see any AI data within my GEIA, and I haven't a clue whether my GEIA AI is included in my total AI shown because my GEIA holding is so small compared to my MLIA that any GEIA AI would get lost in the round-off.

A potential source of your seemingly high return might be -- as I suggested earlier -- if the AI is calculated based on the full rates for the various loans.  To determine whether that might be the case, it would be necessary to know what the AI is for a given loan and compare that to what you'd expect if it was accruing at 7%.  Without a way to know how much of each loan is in your account except by trawling through your statement, this will take a bit of effort, and since there will have been purchases -- and possibly sales -- of loan parts since the last time interest was paid then adjustments for that would be required as well.

One thing you could do that would be a bit easier would be to take note of your total AI on successive days, to see if it is increasing by an amount that would be consistent with the accrual you'd expect on an account of that size at 7%.   With a £10k balance, I would calculate that to be £1.9178/day (being £10k x 7% / 365), but I know that AC don't calculate AI that simply.  AIUI, AC calculate AI by taking the monthly interest -- £58.33 for a £10k account -- and dividing that by the number of days between subsequent payments.  However, since each loan has it's own repayment date, this has to be done on a loan by loan basis, although at the moment every loan should be dividing by 31 because both December and January have 31 days.

I've never been able to match AC's accrued interest calculations exactly, but I can come close enough to spot gross errors.  If what we're trying to determine here is whether interest is being accrued at 7% or 9.5-10%, the difference between £1.92/day and £2.67/day should be pretty obvious.  So if you can check your AI shortly before midnight and then again after about 0100 and let us know what you find, we might learn something.

Yes, £10069 was yesterday the total value including accrued. The accrued interest was exactly £30.

My method simply calculates the number of 'pound days' that funds have been invested, totals them, then converts to 'pound years'. Then it takes the total value including accrued interest, subtracts the total sums invested, which gives the 'amount earned'. Divide the 'amount earned' by 'pound years' and express this as a percentage; this gives the yield. Compounding only arises because of interest actually paid by AC and then reinvested in loans. There is no daily compounding.

As a matter of possible fascination, prior to the advent of computers and spreadsheets this method was used in the clearing bank by whom I was employed for calculating interest due on customers' overdrafts. I know because I was involved on a daily basis. It transfers very neatly to a spreadsheet, which once set up works very effectively.