Personal Finance

Trying to figure out if the interest being charged to my RBC line of credit is higher than it should be?

  • Last Updated:
  • Mar 31st, 2020 6:28 pm
[OP]
Jr. Member
Dec 13, 2015
135 posts
36 upvotes
Red Deer, AB

Trying to figure out if the interest being charged to my RBC line of credit is higher than it should be?

So I have a line of credit with prime interest rate with RBC.
My balance last month was $10,000. And the prime interest rate for that period was 2.95%.
According to my calculation, 0.0295 * 10000 / 12 = $24.58 for what the interest should be.
But I got charged $30.71.
Am i miscalculating this? Or is RBC screwing me?
15 replies
Deal Addict
User avatar
Jul 16, 2012
1180 posts
736 upvotes
Vancouver, BC Canada
breezy11 wrote: So I have a line of credit with prime interest rate with RBC.
My balance last month was $10,000. And the prime interest rate for that period was 2.95%.
According to my calculation, 0.0295 * 10000 / 12 = $24.58 for what the interest should be.
But I got charged $30.71.
Am i miscalculating this? Or is RBC screwing me?
Are you positive about that rate? My HELOC which is RBC prime + 0.5% just dropped 2.95% today?
[OP]
Jr. Member
Dec 13, 2015
135 posts
36 upvotes
Red Deer, AB
Yeah I'm prime. Today it's 2.45%. Have had this rate for over 10 years.
[OP]
Jr. Member
Dec 13, 2015
135 posts
36 upvotes
Red Deer, AB
Any idea about the calculation though?
Member
Oct 21, 2015
297 posts
221 upvotes
Toronto, ON
breezy11 wrote: Yeah I'm prime. Today it's 2.45%. Have had this rate for over 10 years.
They change their LOC interest rate all the time. Mine was increased from like 5% to 9%, so I had to cancel it.
Deal Addict
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Jul 16, 2012
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Sorry I don't great rate though especially for 10 years.
Deal Fanatic
Nov 22, 2015
5523 posts
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Was the balance $10000 every day for the whole month?

PLCs are charged interest on the daily closing balance
Jr. Member
Sep 12, 2008
131 posts
23 upvotes
Brampton
I was in the same boat.....my heloc interested payment in Jan was $425....Feb was $475 inspite interest drops and no further increase to the balance ...I am like what the f**k is happening with RBC?
Deal Addict
Dec 12, 2009
4151 posts
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Toronto
Got my CIBC statement today. There were 3 different rate calculations by dates. The number of days the statement covered was also different than the month before. Which is normal.
Social Distancing means staying apart 2 meters or 6 feet, the depth of a grave.
Get closer and you might have one foot in the grave. (Pass it on)
Deal Expert
Aug 22, 2011
32036 posts
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Ottawa
You're probably being charged a extra insurance fee.
Sr. Member
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Mar 9, 2012
689 posts
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rahulpatel1987 wrote: I was in the same boat.....my heloc interested payment in Jan was $425....Feb was $475 inspite interest drops and no further increase to the balance ...I am like what the f**k is happening with RBC?
It probably had something to do with the numbers of days in each statement cycle. (?)
Member
User avatar
Jan 7, 2019
268 posts
251 upvotes
Maybe instead of guessing, request RBC provide you with an interest calculation breakdown? The big bad bank won’t bite.
Remember to always Thumbs Up good responses! Spread positively.
[OP]
Jr. Member
Dec 13, 2015
135 posts
36 upvotes
Red Deer, AB
BrokeMillennial wrote: Maybe instead of guessing, request RBC provide you with an interest calculation breakdown? The big bad bank won’t bite.
Yah but trying to get through to them in this madness right now is hella time consuming. 2 hour phone call waits minimum
Banned
Oct 23, 2018
85 posts
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Your statement should show the interest rate breakdown for the month. We had several quick decreases.

As well, the calculation should be: int. rate/365 * 10000 *(number of days in month)
Member
User avatar
Jan 7, 2019
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breezy11 wrote: Yah but trying to get through to them in this madness right now is hella time consuming. 2 hour phone call waits minimum
Do you have a personal banker/financial planner/private banker which you have a relationship with?
Remember to always Thumbs Up good responses! Spread positively.

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