A daily interest balance is the calculation of interest (which is generally calculated on an annual basis that may also be broken down to monthly, or daily rates) on the balance of your account at the closing of the business day. Your institution will inform you of when interest will be paid to your account. The interest rate is determined by a variety of factors.
These previous questions may help provide additional insight:
- “How are GIC rates determined and how is interest paid?”
- “Why do different institutions offer different interest rates?”
Learn more about how compound interest can grow your money over time and other investing and financial topics at GetSmarterAboutMoney.ca. Speak to a qualified financial representative for advice that fits your personal and financial circumstances.