Interest calculated daily, paid monthly


New Member
Jan 3, 2019
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

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Board Regular
Sep 1, 2011
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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