How is the daily interest calculated?
Interest is calculated based on the following formula:
Daily Interest Earned = End-of-day Balance x (Interest Rate / Total Days of the Year)
- Interest earned is computed daily at ten (10) decimal points and paid out weekly at two (2) decimal points.
- End-of-day Balance refers to the balance in your Savings Account and/or Savings Jar(s) at 23:59:59 on a given day.
Illustration:
On Day 1, you deposited RM2,000 into your Savings Jar and RM100 into your Savings Account.
Savings Jar
- End-of-day balance = RM2,000
- Interest rate = 3.6% p.a.
- Total days of the year = 366
- Daily interest computation (rounded to 10 decimal points) = RM2,000 x (3.6% / 366) = 0.1967213114
- Daily interest accrued (rounded to 2 decimal points) = RM0.20
- Weekly interest paid = RM0.20 x 7 days = RM1.40
Savings Account
- End-of-day balance = RM100
- Interest rate = 2.5% p.a.
- Total days of the year = 366
- Daily interest computation (rounded to 10 decimal points) = RM100 x (2.5% / 366) = 0.0068306010
- Daily interest accrued (rounded to 2 decimal points) = RM0.01
- Weekly interest paid = RM0.20 x 7 days = RM0.07
On Day 8, RM1.40 interest will be credited to your Savings Jar and RM0.07 interest will be credited to your Savings Account.