How is the interest calculated and paid out?

Interest is calculated daily based on the account balance and paid out to customers monthly.

Here is the formula to calculate interest:

Interest = (Account Balance) × (Daily Interest Rate) × (Number of Days)

Let’s use an example below for a specific time period:

Suppose you deposit ISK 100,000, and the interest rate is 6.0% annually using our method. You deposit the amount on July 1st and leave the balance unchanged until July 31st, with 30 days between these dates.

• Daily Interest Rate = 6.0% / 360 = 0.016%
• Number of Days = 30
• Interest = ISK 100,000 × 0.016% × 30 = ISK 500

So, the accrued interest over this period would be: ISK 500.

Keep in mind that if you deposit or withdraw money during this period, the accrued interest amount will change.

You can view our current interest rates here.