How is interest calculated?

We use the daily balance method to calculate the interest on your Deposit Account. This method applies a daily periodic rate to the balance in the account, and interest that has been accrued to the account, each day. 

We calculate the daily periodic rate by dividing the applicable interest rate by 365 days. We then multiply the daily periodic rate by the daily balance in the account. Interest for your account will be compounded daily and credited to your account monthly. Interest on Plans is credited to your main account.

Funds that are in “Pending” status will not begin accruing interest until the funds are settled, per the Deposit Agreement, which states: “Interest begins to accrue on the business day we receive credit for your check deposits. For wire transfers, electronic direct deposits, and ACH credits to your account, interest begins to accrue on the business day we receive settlement of your deposit.”

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