4:59 am

September 30, 2017

9:48 am

August 1, 2021

Hi Everyone,

First time on the forum and posting.

My question is : how do they calculate the 1% interest?

I did calculate my amount and I see the percentual is 0.848 % ( so if I round up ) = 0.85%.

They base the money divide 12 months or 360/365 days and apply that percentual?

Where I can find information to check about their calculation?

Thank you.

10:40 am

September 6, 2020

11:18 am

April 14, 2021

Rebelyouth said

My question is : how do they calculate the 1% interest?I did calculate my amount and I see the percentual is 0.848 % ( so if I round up ) = 0.85%.

They base the money divide 12 months or 360/365 days and apply that percentual?

That is a pretty big difference. I found that there can be differences depending on the payment for interest, too. For example, I have a 1-year cashable GIC with HSBC and I had the choice of getting interest paid either at the end of each month or a lump sum at maturity. I found that getting interest paid monthly is less than if I had elected to receive the entire sum of interest at maturity.

12:05 pm

August 1, 2021

Thank you for your answers.

So, if I put $30,000 on Jan 1st at 1.00% (let's say was always that, and didn't decrease to 1.00 %), 12 months, 365 days, and it will be, at Dec 31st, $300.

If I put another $3,000, on June 1st the amount will be $33,000, the interest will be calculated as $30,000 at 1% from Jan 1st to Dec 31st and the additional $3,000 at 1% from June 1st to Dec 31st and added to the amount?

Another question: the amount is calculated the same day you deposit the money to the account and not after the holds period ( 5 days), right?

12:21 pm

April 6, 2013

Rebelyouth saidSo, if I put $30,000 on Jan 1st at 1.00% (let's say was always that, and didn't decrease to 1.00 %), 12 months, 365 days, and it will be, at Dec 31st, $300.

…

It is not as simple as that because Alterna Bank pays interest on its saving account monthly.

It will be $30,000 from January 1 to January 31. There will be $30,000 x 31 / 365 x 1% = $25.48 interest added on February 1.

It will then be $30,025.48 for the month of February and more interest will be added March 1.

Yes, interest is paid from effective date of deposit. Use the dates shown in the monthly statements. Some places, like Simplii, show the posting date on their online banking site and not the effective date of the transactions.

12:23 pm

April 14, 2021

Rebelyouth said

So, if I put $30,000 on Jan 1st at 1.00% (let's say was always that, and didn't decrease to 1.00 %), 12 months, 365 days, and it will be, at Dec 31st, $300.If I put another $3,000, on June 1st the amount will be $33,000, the interest will be calculated as $30,000 at 1% from Jan 1st to Dec 31st and the additional $3,000 at 1% from June 1st to Dec 31st and added to the amount?

Another question: the amount is calculated the same day you deposit the money to the account and not after the holds period ( 5 days), right?

I think that your suggested calculations are correct, if the bank specifically says that it calculates interest daily and pays it monthly.

Most institutions give you the benefit of the doubt and begin to calculate interest on the date of deposit and not after the hold period expires. I cannot say for every bank, but all with whom I deal act in this manner.

2:41 pm

September 6, 2020

4:58 pm

January 9, 2011

To me its a clear signal they have exited the deposit market, perhaps hoping to retain a few bucks from those not paying attention.

Its too bad because they used to be competitive, but times always change I guess. I used to have a lot of TFSA funds with them a few years ago.

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