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)
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“End of day Balance” refers to the balance in your respective Main Account and Savings Pocket(s) at 23:59:59.
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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
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"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 (3% p.a. X 365) =
| On Day 1 (29 Dec 2023), you deposited RM50 upon account opening |
|
End of day balance = RM50 Interest rate = 3% p.a. Total days of the year = 365 - Interest rate per day = 3% p.a. / 365 days = 0.00008219178 - Multiply by end of day balance = 0.00008219178 X RM50 = RM0.00410 - Interest round to nearest cent = RM0.00 |
| On Day 2 (30 Dec 2023), you deposited RM2,000 into the account |
|
End of day balance = RM2,050 Interest rate = 3% p.a. Total days of the year = 365
Interest rate per day = 3% p.a. / 365 days = 0.00008219178 Multiply by end of day balance = 0.00008219178 X RM2,050 = RM0.16849 Interest round to nearest cent = RM0.17 |
| On Day 3 (31 Dec 2023), no deposit and withdrawal activity in the account |
|
End of day balance = RM2,050.17 Interest rate = 3% p.a. Total days of the year = 365
Interest rate per day = 3% p.a. / 365 days = 0.00008219178 Multiply by end of day balance = 0.00008219178 X RM2,050.17 = RM0.16850 Interest round to nearest cent = RM0.17 |
Example for (3% p.a. X 366) =
| On Day 4 (1 Jan 2024), you withdrew RM700 from the account |
|
End of day balance = RM1,350.34 Interest rate = 3% p.a. Total days of the year = 366
Interest rate per day = 3% p.a. / 366 days = 0.00008196721 Multiply by end of day balance = 0.00008196721 X RM1,350.34 = RM0.11068 Interest round to nearest cent = RM0.11 |