funseeker Posted July 27, 2004 Posted July 27, 2004 When I had my Gas connected a year ago I had to pay £250 deposit which is fair enough and I am due it back any day now. I got to thinking the other day that money could have been gaining interest in my bank account instead of the company's bank account. Can you imagine just how much interest company's like the gas and electricity are making on our money? I really don't think it is right. Does anyone else have an opinioin on this?
Stavros Posted July 28, 2004 Posted July 28, 2004 I think that you'll find that your deposit incudes interest when you get it back. If you checked when you paid your deposit they would have advised you what interest rate that they give. I paid a deposit with MT a few years back, £100 I think and they returned it with interest. (Money held as a deposit should be put into something like a client account as money held on account.) I think that the law states that this money must be repaid with specific requirements on interest. I can't be bothered looking it up tbh. You should contact Manx Gas and ask them about the return of your deposit and how much it will be including interest. Stav.
Observer Posted July 28, 2004 Posted July 28, 2004 To save you a possible dissappointment though, you may well find that there is no interest paid. Client money interest can have a minimum deposit level under which no interest is paid - it would be set out in the terms & conditions.
Stavros Posted July 28, 2004 Posted July 28, 2004 According to The Clients' Money Regulations, a firm must always place Clients' Money in an interest-bearing account unless the interest earned would not be material. Interest would be material if the money is likely to be held for at least the number of weeks shown in the left hand column of the following table and the minimum credit balance of the client equals or is more than the sum in the right hand column. Number of Weeks_____________Minimum Balance 8 __________________________ £1,000 4 __________________________ £2,000 2 __________________________ £10,000 1 __________________________ £20,000 If my interpretation of the Regulations is correct, Clients' Money held by a Firm as deposits for two or more clients would be considered as one single client for the purposes of accruing interest. The obligation of the Firm is to take reasonable steps to ensure that the client does not lose material sums of interest because the money remains in low or non-interest bearing accounts. There may be circumstances, for example, where money should be placed on overnight deposit. The fair rate of interest earned must be at least the minimum deposit rate offered publicly by a Bank for small deposits. The Firm and the client may agree in writing different arrangements for the payment of interest on Clients' Money held. This agreement may be in the engagement letter with the client. Stav.
Guest Rox Posted July 28, 2004 Posted July 28, 2004 Funseeker? Seeking information about financial deposits payable to manx Gas is your idea of fun? So, what do you do at the weekend then - travel around local petrol stations comparing prices? See if the bread at TESCO's is cheaper than Shoprite? You might like to consider changing your log-on name to Roy. (Gough)
funseeker Posted July 28, 2004 Author Posted July 28, 2004 No it isn't my idea of fun but just because I call myself funseeker doesn't mean I can't have a serious moment.
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