webwiz
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Post by webwiz on Oct 6, 2015 7:25:01 GMT
The statement gives a figure for Total interest earned: but it appears to Total Interest Paid. Am I right and does it matter?
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Post by pepperpot on Oct 6, 2015 7:56:30 GMT
I don't think it matters. Interest is only earned once it is received, you don't pay tax on a cheque in the post?? So for example, the first few days of Apr are accruing interest but it won't show up on this years statement, however it will on next years once it has been paid in May.
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webwiz
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Post by webwiz on Oct 6, 2015 8:15:46 GMT
"earned" sounds more like "accrued" to me, and the difference can be substantial when a loan does not draw down for months, but as you say it probably does not matter much.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Oct 6, 2015 8:34:19 GMT
"earned" sounds more like "accrued" to me, and the difference can be substantial when a loan does not draw down for months, but as you say it probably does not matter much. accrued is merely promised, you might never get it. Ive got plenty of accrued on AC but if & when it will actually get paid is undeterminable and will definitely be in a different tax year for a large part of it.
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webwiz
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Post by webwiz on Oct 6, 2015 10:42:03 GMT
Yes "paid" and "accrued" are quite clear. "earned" seems ambiguous.
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