What is daily balance vs. average daily balance dividend calculation method?
Daily balance means that a daily periodic rate is applied to the balance in the account each day, provided the account meets the minimum balance requirement each day. If the minimum daily balance requirement is not met, a dividend is not earned for that day. The formula is the dividend rate divided by 365 days. The average daily balance is calculated by adding each day-end balance in the dividend period together and dividing by the number of days in the dividend period. If the account does not meet the average daily balance requirement for the dividend period, dividends are not earned for that period. With the formula, the Average daily balance means that a periodic rate = the dividend rate multiplied by the average daily balance multiplied by 365 (the number of days in the dividend period). 3. What is APY/APYE? How do they relate to the dividend rate? Dividend rates are listed in the LAFCU “Rates & Fees” brochure, and on our website. It is the initial percentage rate for an account, a
