0.000001%? Really?

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[–] 53 points 1 day ago

And if it was your fault there would have been a bill for $10k and court summons.

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  • [–] 27 points 23 hours ago (8 children)

    Is there context I'm missing here?

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  • [–] 8 points 23 hours ago (6 children)
  • [–] 30 points 23 hours ago* (5 children)

    The original picture was a letter from a financial institution saying they made a calculation error of .0000001% on interest for OPs mortgage (I think) and refunded him $2 for the inconvenience.

    Dunno why the pic got swapped with the meme.

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  • [–] 34 points 1 day ago (2 children)

    lmao. floating point precision issue?

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  • [–] 13 points 1 day ago* (1 child)

    Seems plausible. It could also be a difference of "rounded up when any remainder is required to be floored." That percentage is $0.01 on $1,000,000, so anything ~$500,000 or above would create an issue.

    This might also explain the blanket $2, if this went out to a wide range of portfolios. $2 would cover anything up to a $200M value.

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  • [–] 22 points 1 day ago (3 children)

    I mean... they could have said nothing, pocketed the 2$ and wouldn't have lost face... them admitting this is... funny, because the amount is so small, but it's still a good thing.

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  • [–] 1 point 19 hours ago

    I think it's the case of "they're required to do that by government" or sth like that. Otherwise they would not do it, furthermore they might just have "errors" regularly that takes more money from people

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  • [–] 14 points 1 day ago

    And that's why you never use floating point arithmetic in finance.

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  • [–] 13 points 1 day ago

    Wow two loonies?

    That and two more loonies could buy a coffee!

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  • [–] 8 points 23 hours ago (7 children)

    Very important: make sure you put that $2 toward principal so that interest doesn't accrue on it.

    Congratulations on your windfall. Maybe share your tips to achieving financial independence by cross-posting to !personalfinancecanada@lemmy.ca.

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  • [–] 1 point 22 hours ago (6 children)

    The fuck is the other option than putting it towards principal? It's compound interest, no?

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  • [–] 1 point 21 hours ago (1 child)

    Typically when you make a manual payment on a mortgage it will give you a couple options, including "regular payment" and "principal only." The former will go toward your next regular payment, so if your standard automatic payment is $1000 and you pay $2 manually, your next automatic draft would be $998.

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  • [–] 1 point 21 hours ago (3 children)

    If you don't specify they automatically put any extras towards interest so you're not reducing the principal.

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  • [–] 1 point 21 hours ago (2 children)

    What?? Are they somehow different? Does interest not accrue on interest?

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  • [–] 2 points 20 hours ago (1 child)

    If it's applied to the interest, it takes $2 off the total because you're always paying off the last month first. (Yes it's predatory and that's how mortgages work) If it's applied to the principal it takes off $2 plus the interest that would have accrued on that $2 from the time of payment to the time you finally pay it off completely.

    Unless I'm wrong. I'm not an expert. But we paid off the mortgage for our condo early (got a windfall) and that's how I understood what I was told at the time. It's a reason some loans have a prepayment penalty; don't get one of those.

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  • [–] 8 points 1 day ago

    A toonie saved is a toonie earned

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  • [–] 8 points 1 day ago (1 child)

    Is that your interest rate or your phone number!

    This is a very RBC letter. I hope you may enjoy a Tim’s small coffee due to this windfall.

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  • [–] 8 points 1 day ago (3 children)
  • [–] 2 points 22 hours ago (2 children)

    Well, no, the house still costs money, just $2 less ;-)

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  • [–] 3 points 20 hours ago

    When my company switched HSA providers I transferred my balance from the old company to the new company. While the transaction was processing the interest payment hit the account and my balance ended up being more than my transfer by $0.01. The company ended up sending me a check for the 1¢ but I never bothered cashing it.

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  • [–] 3 points 20 hours ago

    OP:

    But seriously, what are you going to do with your new found wealth?

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  • [–] 7 points 1 day ago

    Rejoice! Go buy a Beaver Tail!

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  • [–] 3 points 1 day ago

    After I bought my house, after the notary, mortgage paper, etc. after maybe 3 weeks I received a registered letter from the notary with an explanation letter about rounding error and enclosed was a 1¢ check, yes, a $0.01 check. In the letter it was written that I please must deposit it or the notary book will not balance.

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