It’s simple & rewarding to save. Earn 6.00%* interest until February 29, 2024. | Page 4 | Tangerine Bank | Discussion forum

althisa wrote:
"(Balance*6%/Months in year)*(Days in Account)+(New Balance*6%/Months in year)*(Days in Account)
=(20000*0.06/12)*(23/31)+(45000*0.06/12)*(2/31)"

There are 2 errors in this calculation. The denominator is 12*31=372 days. It should be 365 days for 2023. The period from Oct. 6-29 with a balance of $20,000 is 24 days not 23 days.

In post 54 above Wrayzor wrote:
"Previous promo interest was accurate to the penny for me using the annualized rate with this formula:
Promo Annual Rate/365x[#days]x[new funds in account]"

This is the correct formula for simple interest over a certain number of days with the denominator at 365 days.

In post 58 above Lodown wrote:
"Based on your numbers you got 5.78% for the 31 days in October. This works out to 5.94% annually....not quite 6% due to rounding error.
6% compounded monthly would have given you $93.70 in Interest for October."

I too calculate $93.70 total interest using the correct formula and the days specified by calderbennett in post 57 where he wrote:

"Yes. I had $0 on Oct 1st, added $20k on Oct 6th and another $25k on Oct 30th. I estimated 6% interest would be $90.41. Received $90.27. Not complaining."

If calderbennett described the number of days accurately he did not get enough interest.

In my own case, for October 2023, Tangerine paid the regular interest (1%) and the bonus interest (5%) within a penny of the amounts I calculated using the correct formula. I have checked previous offers and the interest paid by Tangerine has been paid as promised in those offers. There seems to be some concern that Tangerine is being tricky in some way. I would say Tangerine has played no tricks on me with any of the past offers I have accepted.