Interest calculated daily, paid monthly

Chris15

New Member
Joined
Jan 3, 2019
Messages
1
I have a savings account where interest is calculated daily and paid on the 3rd of each month. Most months the account is not touched but sometimes I might pay an amount in or take some out. Have created a spreadsheet with columns for amounts in/out, daily balance, number of days between transactions but I cannot get my calculations to match what the bank has actually paid. I also seem to need to change the formula slightly for when money has been paid in versus taken out. The basic formula I started with was DailyBalance*(1+DailyRate)^NoOfDays-DailyBalance or 25033.51(DailyBalance)*(1+0.000041209(DailyRate=1.50/364)^28(NoOfDays=03/02/19-02/03/19)-25033.51(Starting Balance). This gives me £28.53 compared to the bank's £28.65. The difference between my calculations and the bank's doesn't stay constant for different months. Have tried rounding up/down in different places but still can't work it out.
Can you help, it's driving me nuts. Can send the spreadsheet if it would help
 

MarkReddell

Board Regular
Joined
Sep 1, 2011
Messages
200
Some banks pay interest based on an avg. daily balance. However, at the end of day, just take the extra .12 & enjoy!!! The time & frustration might not be worth it at the end of the month.
 

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