We calculate your interest daily, which means it's based on your balance at the end of each day. Here's how it works using a simple example:
Let's say you have a balance of £10,000 for a whole month, with a rate of 4.50% AER (this would be 4.41% gross) for the entire time.
Annual interest: First, we calculate the interest you'd earn in a full year. The gross rate is an annual rate, which means we need to break it down correctly to get the monthly interest figure. In this case, the annual interest earned would be £441.
Daily interest: Next, we figure out your daily interest by dividing the annual amount by 365. This is because your interest is calculated every day, so we need to know the daily rate. This would give you a daily interest payment of around £1.21.
Monthly interest: Finally, we multiply that daily amount by the number of days in the month to get your total interest payment. For example, if the month has 31 days, you would receive £37.45.
Need further help?
If you have any further questions, get in touch with our support team using the in-app chat (this can be found in the Contact us section on the Profile tab) or by email at hello@getchip.uk for further help.