Interest Rounding

[lingua101]

Is there any guideline know how the interest rounding should be done in Singapore?

I understand that the interest is computed daily. But what shocked me is I was told by one of the bank here that they also do the rounding daily.

So this means if you do not earn 0.5 cents on that day, you will get zero interest. Assuming every day you should earn 0.45 cents which translate to 13.5cents or 13-14 cents in a month, you will end up with nothing.

I know the amount is rather small but to me this is not a fair practise and can you imagine if 14 cents on 1 millions account.

Any idea if there is any MAS regulation on this.

 

[NiteX2]

I think you will have your answer if you just reverse engineer.

What you have heard is not true

 

[lingua101]

I think you will have your answer if you just reverse engineer.

What you have heard is not true

what do you mean not true? That's what I was told when I asked why no interest paid into my account. I calculated that I should earn at least 1 cents interest in my account. They told me because they round it to a cents on daily computation.

So if I will only get 1 cents on a month for sure if they round it daily I will got zero

 

[lzydata]

I have savings accounts with several banks and I have not had this problem. The total interest paid is consistent with the sum of interest calculated daily and not rounded down to zero.

As it is, taking the most common minimum initial deposit amount and the lowest savings interest rate in town for 30 days, the result 500 x 0.05% / 365 x 30 = 0.0205, which means you should get at least 2 cents a month. How would you get just 1 cent a month?

I understand if you do not want to share more details, but I am wondering whether the reason why you are not getting interest is because your balance is lower than the minimum required to draw interest. For example, CIMB's minimum amount to draw interest is $1k.

 

[lingua101]

I have savings accounts with several banks and I have not had this problem. The total interest paid is consistent with the sum of interest calculated daily and not rounded down to zero.

As it is, taking the most common minimum initial deposit amount and the lowest savings interest rate in town for 30 days, the result 500 x 0.05% / 365 x 30 = 0.0205, which means you should get at least 2 cents a month. How would you get just 1 cent a month?

I understand if you do not want to share more details, but I am wondering whether the reason why you are not getting interest is because your balance is lower than the minimum required to draw interest. For example, CIMB's minimum amount to draw interest is $1k.

coz I was talking about USD account with 0.03% interest rate....

That's what I told the agent also.... but they insisted for this account the do rounding every day while they compute the interest.

that's why I am challenging them.

I dunno if bank can do whatever they want

 

[Mecisteus]

the currency shouldnt matter. the principles of calculations should be the same.

for your case, there is no head no tail so difficult to discuss here.

all i can say is, i dont really care about the interests in my smaller accounts. because they are just about the minimum requirements. but the interests in my cimb account is correct.