How is the dividend calculated?
The FI may calculate the dividend by either a Daily Balance Method or an Average Daily Balance Method. The Daily Balance Method applies a daily periodic rate to the principal in the account each day and the Average Daily Balance Method applies a periodic rate to the average daily balance in the account for the period. The average daily balance is then calculated by adding the principal in the account for each day of the period and dividing that figure by the number of days in the period. For more details, refer to the account disclosures provided with the application on CheckingFinder OR contact the institution directly.
The amount of the dividend is calculated by dividing the amount available for distribution from the Permanent Fund earnings account by the number of eligible applicants. The calculation is based on a statutory formula under Alaska Statute 43.23.025 and is required by law to be announced by October 1.
