How is the interest calculated and paid out?

Interest is calculated daily based on the balance in your Savings Jar and paid out monthly — so you get interest on your interest too.

Here's how we work out the interest:

Interest = Balance in your Savings Jar × daily interest rate × number of days

Let's take an example: say you deposit ISK 100,000 into your Savings Jar on July 1st and leave it untouched until July 31st — that's 30 days between the two dates. Right now, interest on indó Savings Jars is 6.35% per year (6.54% AER).

• Daily rate = 6.35% / 360 ≈ 0.0176%
• Number of days = 30
• Interest = ISK 100,000 × 0.0176% × 30 ≈ ISK 529

So the interest earned over this period would come to about ISK 529.

Just keep in mind: if you deposit or withdraw money during the period, that changes the amount your interest is calculated on.

Our rates change from time to time, so feel free to check the current rates and fees here to see exactly what you're earning right now. Every little bit adds up! 💚