All Topics / Finance / deposit interest – how to calculate

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  • Profile photo of MRK25TMRK25T
    Member
    @mrk25t
    Join Date: 2005
    Post Count: 15

    The search function on the forum never works for me so apologies if this question has been raised previously.

    I think the real estate agent didnt credit me the full interest on my deposit when I purchased my IP.

    I had a 6 week settlement period and payed a 10% deposit of $62k after week one.
    This means the the RE agent had the $62k cheque for 5 weeks. I assume it would take them a week to clear the cheque so I the interest on the deposit would be for a period of 1 month.

    Just after settlement I recieved a cheque for $41. I was told by the RE agent when exchanging contracts that they invest the deposit and just after settlement they give me 1/2 of the interest and the vendor the other 1/2.

    i.e. on $62k invested for 1 month the total interest was $82.

    I calculated the interest rate to come to the above figure is about 1.59% which is quite low.

    Has someone pocketed some of the interest or is a return of 1.59% normal?

    Thanks,
    Mark

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    I think an agent pocketing money from a trust account is a serious matter, and probably something they wouldnt do for just $41.

    Terryw
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    Profile photo of Freddo_frogFreddo_frog
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    @freddo_frog
    Join Date: 2005
    Post Count: 8

    lession learnt? Dont use a large deposit. I never use more that 1k for a deposit.

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