How is the interest calculated and paid out?

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

Here's the formula for the interest calculation:

Interest = (Deposit amount) × (Interest rate per day) × (Number of actual days)

Let's illustrate with an example:

Suppose you have a deposit of ISK 100,000 with an interest rate of 7,75% (annually) using our method. You deposit on July 1st and keep it unchanged until July 31st, with 30 days between those dates.

1. Interest rate per day = 7.75% / 360 = 0.02153% (rounded to 5 decimal places)
2. Number of actual days = 30

Interest = ISK 100,000 × 0.02153% × 30 = ISK 646

So, the interest accrued for this period would be ISK 646.

Remember, if you deposit or withdraw more during this period, the final interest payment will change.

You can find our current interest rates here: https://indo.is/verdskra