How is interest calculated on a daily balance of £20,000?
Monthly earnings.
We calculate your interest daily, based on your end-of-day balance. We'll pay the interest to you on the first day of the following month.
This is the calculation we use:
(End-of-day balance x Gross interest rate) ÷ 365 days in the year = Interest earned that day.
The total amount of daily interest earned throughout the month is the interest earned for that month.
Daily calculation | Interest earned |
|---|---|
1st day (£20,000.00 × 0.0402) ÷ 365 | £2.21 |
2nd day (£20,000.00 × 0.0402) ÷ 365 | £2.21 |
3rd day (£20,000.00 × 0.0402) ÷ 365 | £2.21 |
Continued | |
Earned that month Total amount of daily interest throughout a 30-day month | £66.16 |
This breakdown is for illustrative purposes only. It assumes the interest rate and deposit amount remains the same. Unlike a savings account, we know your balance with a Kroo current account may go up and down, which will impact your monthly interest earnings. That's why Kroo calculates interest daily and we've given you the daily calculation above.
Daily and monthly interest is rounded up or down to two decimal places. You should keep this in mind when doing your own calculations.
It’s time your money earned its keep.
“If you’re happy to do all your banking via an app on your smartphone, Kroo is my number one choice. Paying an impressive 4.35%, it’s a great option for savers.” - Andrew Hagger, finance expert from Moneycomms
With Kroo, your money works for you.
*As of 12 August 2023.
