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How to calculate interest rate on your savings plans
How to calculate interest rate on your savings plans
Vivian avatar
Written by Vivian
Updated over a week ago

The interest rate on Cowrywise savings plans is provided on an annual basis. However, the interest is prorated based on the period your funds are saved or invested.

For instance, if you save N100,000 on Cowrywise for 3 months with an 8.5% interest rate, the calculation is as follows:

8.5% of 100,000 / 12 months = N708 - interest for one month.

N708 * 3 months = N2,125 - interest for 3 months

This calculation ensures that you receive a fair share of the interest based on the duration of your savings.

If you have a savings plan where you regularly or irregularly contribute funds, the calculation can become more complex. However, we have simplified this process for you by providing daily tracking on the app. On a daily basis, your interest is calculated using the following formula:

Daily Interest = (Principal Amount * Interest Rate) / 365

This formula ensures that your savings grow steadily and provides transparency in tracking your interest earnings.

You can read more about the interest rate here.

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