Interest rate calculation on Performance first savings account

Jimy
Contributor
They tell me I get .05 percent (.0005?) interest. My account had 6000 on July 15. Today it has 9000. The average daily balance couldn't be any less than 6000, as I've had no withdrawals. So at a minimum, I should have 3.00 interest paid. My statement reflects I received 0.31 cents. BULLCORN! Tried talking with Stephanie an executive resolution specialist, whom had no idea what she was doing and put me on hold indefinitely until I ran out of patience and hung up. I want an answer please, USAA. Someone that knows what's going on, please call 706-604-2899 and give me the skinny with my account interest.

6 REPLIES

I think the problem with your calculation is you are using the APR as a monthly calculation amount rather than a yearly amount. The A (annual) PR is the amount that you will be paid over the course of a year on a balance. 31 cents is accurate.

 

Your average daily balance was obviously more than $6000 because you never took any money out. The average daily balance was less than $9000, because that is your balance now. So, lets just assume it was in the middle at $7500.

 

$7500 * .0005 = $3.75

 

$3.75 / 12 = 0.3125 or 31 cents.

 

 

You get a gold star for the math assignment!

Props on the math skills Chief.

Jimy,

 

Thank you for posting in the Community. ChiefCz is correct. We take your average daily balance and multiply by the annual percentage yield (APY). The resulting value is divided by 365 (days in a year) and then multiplied by the number of days in the cycle (month). Using this calculation, the distribution of interest appears to be correct.

 

If you would still like to speak with someone regarding this matter, please reach back out to let us know.

 

ChiefCz,

Thanks for your help in addressing the question!

So how are daily rates calculated? Is it a rolling 365 window or calendar year?

@Binks85, are you referring to a loan or bank account?