bank interest calculation in question… looking for your 2 cents

1 minute read Published:

I need some help from some people who understand finances better than I do, am I getting ripped off of a cent a month interest by my bank? (earth shattering importance, of course)

Imagine the following (hypothetical) savings account earning 1% annual interest. 1% annual is (0.01 / 365) 0.000027397260274 daily interest. So for every day, you multiply the amount of money you have accruing interest by that daily amount… add the days together and you’ve got your interest amount for that length of days… when your money amount changes (when you add to it or reduce it) your calculations change, so you need to reflect that… a basic table is displayed below…

amount daily interest days of interest

$2,525.42 $0.069189589041096 14 $0.96865424657534

$3,605.42 $0.098778630136986 16 $1.58045808219178


Unfortunatly, my bank reported $2.53 of interest for this month, instead of $2.55, which is what I show… tried changing the number of days around, and never got anything close to this figure.

So, do I even ask my bank? thoughts?

Published by in anita using 169 words.

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