How is daily interest calculated?
Interest is calculated based on the following formula:
Interest Amount = End of day Balance x (Interest Rate / Total Days of the Year)
- “End of day Balance” refers to the balance in your respective Main Account.
- The second decimal point will be rounded up to the nearest number if the third decimal point is 5 or above. Otherwise, it will be rounded down. Examples are as follows:
- 0.02499 is rounded to 0.02
- 0.02501 is rounded to 0.03
- 0.99999 is rounded to 1.00
- 0.99199 is rounded to 0.99
- "Total Days of the Year" refers to either 365 for non-leap years or 366 for leap years, depending on the specific year for which the “End of day Balance” is being calculated.
Example for (2.5% p.a. X 366) =
On Day 1 (1st Oct 2024), you deposited RM50 upon account opening
End of day balance = RM50
Interest rate = 2.5% p.a.
Total days of the year = 366
- Interest rate per day = 2.5% p.a. / 366 days = 0.00006830601093
- Multiply by end of day balance = 0.0000546448 X RM50 = RM0.003415300546
- Interest round to nearest cent = RM0.00
On Day 2 (2nd Oct 2024), you deposited another RM2,000 into the account
End of day balance = RM2,050
Interest rate = 2.5% p.a.
Total days of the year = 366
- Interest rate per day = 2.5% p.a. / 366 days = 0.00006830601093
- Multiply by end of day balance = 0.0000546448 X RM2,050 = RM0.1400275557
- Interest round to nearest cent = RM0.14
On Day 3 (3rd Oct 2024), no deposit and withdrawal activity in the account
End of day balance = RM2,050.14
Interest rate = 2.5% p.a.
Total days of the year = 366
- Interest rate per day = 2.5% p.a. / 366 days = 0.00006830601093
- Multiply by end of day balance = 0.0000546448 X RM2,050.11 = RM0.1400371204
- Interest round to nearest cent = RM0.14