How Do You Calculate Daily Interest Earned On A Checking Account?
Some banks and financial institutions offer interest on checking accounts as an additional incentive for people to select them for their banking needs. Typically, checking accounts offer lower interest rates than other deposit accounts, such as savings accounts or money market accounts. To calculate the daily interest earned on a checking account, you need to know how much money you have in the account and the annual interest rate. Divide the annual interest rate expressed as a percentage by 100 to convert it to a decimal. For example, if your checking account earns 1.1 percent per year in interest, you would divide 1.1 by 100 to get 0.011. Divide the annual interest rate expressed as a decimal by 365 to calculate the daily interest rate. For example, if your annual interest rate on your checking account equals 0.011, you would divide 0.011 by 365 to get 0.0000301370. Multiply the result from Step 2 by the balance of your checking account to calculate the daily interest earned. In this
