Home
Back
Daily Interest Formula:
| From: | To: |
The Daily Interest Calculator for UK Savings calculates how much interest your savings earn each day based on your account balance and annual interest rate. This helps savers understand their daily earnings and plan their finances accordingly.
The calculator uses the daily interest formula:
Where:
Explanation: The formula divides the annual interest rate by 365 to get the daily rate, then multiplies it by your savings balance to calculate your daily interest earnings.
Details: Understanding daily interest helps savers track their earnings, compare different savings accounts, and make informed decisions about where to keep their money for maximum returns.
Tips: Enter your savings balance in pounds (£) and the annual interest rate as a percentage. The calculator will show your estimated daily interest earnings.
Q1: Is interest calculated daily on all UK savings accounts?
A: Most modern savings accounts calculate interest daily, but some older accounts may use different methods. Always check with your bank.
Q2: Do I pay tax on savings interest in the UK?
A: Most UK residents have a Personal Savings Allowance. Basic rate taxpayers can earn £1,000 interest tax-free, higher rate taxpayers £500.
Q3: Does this calculator account for compound interest?
A: This calculator shows simple daily interest. For compound interest calculations, the interest would be added to the principal daily.
Q4: Are there different interest calculation methods?
A: Some accounts may use 365.25 days to account for leap years, but most UK banks use 365 days for simplicity.
Q5: Can I use this for other currencies?
A: While the formula works for any currency, this calculator is specifically designed for pounds sterling (£).