ubank Interest Calculation Question

Rifulreinhardt on 15/11/2023 - 15:28
Last edited 15/11/2023 - 17:33 by 1 other user

According to ubank, the formula is: Daily closing balance x (applicable interest rate / 365) = Interest accrued on that day

My question is does it mean the practice is - I need to activate the bonus interest rate on the 1st day of that month to get the maximum amount?

If i deposit $200 on the last day of the month. do i get bonus interest rate only on the last day?

Same goes for ING? As ING requires you to meet criteria to activate bonus. Does it mean it starts to accumulate bonus interest from the day you've meet the criteria. If you complete the 5 transactions only before the last day you get bonus interest for 1 day only?

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• 

  Ocker on 15/11/2023 - 15:32

  +9

  Deposit on any day of the month and the bonus rate will apply for the entirety of that month

  • 

    jv on 15/11/2023 - 16:45

    -2

    bonus rate will apply for the entirety of that month

    but calculated daily…

• 

  hasher22 on 15/11/2023 - 15:39

  +1

  You can deposit the 200 when ever during the month, doesn't have to be on the first day of each month, you can do it on the last day if you wanted to.

  The system will activate the bonus interest and backdate to the first of the month.

  • 

    jv on 15/11/2023 - 16:45

    you can do it on the last day if you wanted to.

    The interest for the $200 won't apply though as interest is calculated on the minimum daily balance.

    • 

      apsilon on 15/11/2023 - 17:11

      +1

      Correct, you don't earn interest on funds not in the account. This feature isn't exclusive to UBank.

    • 

      Cheapskate Paul on 15/11/2023 - 22:04

      The interest for the $200 won't apply though as interest is calculated on the minimum daily balance

      That's not correct. Interest is calculated on the daily closing balance.

      https://www.ubank.com.au/help/current/everyday-banking/earni…

      • 

        jv on 15/11/2023 - 22:14

        Interest is calculated on the daily closing balance.

        That's nice of them…

        Many banks use the minimum balance…

• 

  Drakesy on 15/11/2023 - 16:05

  my question is does it mean the practice is - i need to activate the bonus interest rate on the 1st day of that month to get the maximum amount?

  nope, you could move the money in on the second last day and it'll activate it for the whole month.
  If your point is if you move the money on the 1st vs say the 31s, then yes you'll have more money in the account for the month for longer.

  • 

    hasher22 on 15/11/2023 - 23:07

    +1

    $200 interest on let's say 5% p/a is only $0.83 per month. If a customer is only depositing 200, don't think worrying about 1st or last day of each month is worth the hassle.

• 

  jv on 15/11/2023 - 16:43

  -1

  (applicable interest rate / 365)

  What about leap years ???

• 

  Marcsie on 15/11/2023 - 19:57

  -1

  lol

• 

  JimmyF on 15/11/2023 - 21:23

  +2

  If i deposit $200 on the last day of the month. do i get bonus interest rate only on the last day?

  Any day of the month, but wouldn't recommend aiming for the last day of the month incase its delayed = you miss out on the bonus interest.

  • 

    KangaDrew on 16/11/2023 - 10:49

    You could easily send $200 via Pay ID or OSKO. But yeah, I wouldn't risk it on the last day. Murphy's Law and what not.

    • 

      JimmyF on 16/11/2023 - 14:24

      You could, but if its delayed for whatever reason, you miss out!

• 

  avoidfullprice on 15/11/2023 - 23:11

  From a programming perspective

  The bank calculates the end of day balance and divide that by 365 to get daily interest balance.

  Then end of the month, it sums up all these daily balance / 365. It then multiplies the total with the interest rate. interest rate includes bonus rate if you meet the criteria.

  This applies to any bank.