 # Annual 7% rate translates to what monthly interest rate

Hi Team NiyoX

Given that the 7% p.a. is for amount >rs.1lac only, pl let me know the following for every rs.10lac deposit.:
(1.) what will be the effective % rate per month and per day?
(2.) what will be the effective % rate per annum?

Also share the formulae to arrive at the answer.

Thanks.

Hey @RDX ! Hope you’re having a great day! You may find the required answer below.

Case Scenario: User has deposited INR 10,00,000 in NiyoX - Equitas SA.

The first one lakh rupees will earn 3.5% interest and the remaining nine lakhs will earn 7.0% interest. Below is how to calculate the same:

In NiyoX, the interest payouts are paid on quarterly basis,

The first INR 1,00,000 will earn 3.5% interest p.a . Here’s how to calculate the same,
(3.5/100) x (1,00,000) x (0.25) = ₹875 (This is the exact amount payout on quarterly basis)

The rest INR 9,00,000 will earn 7% interest p.a. Here’s how to calculate the same,
(7/100) x (9,00,000) x (0.25) = ₹15,750 (This is the exact amount payout on quarterly basis)

If both the payout segments are combined, you earn a total of ₹16,625 per quarter.
So, multiplying the same by 4, you earn ₹66,500 per year at a cumulative interest of 6.65% p.a if you deposit INR 10,00,000.

Here’s how to calculate the cumulative interest:
((((3.5/100) x (1,00,000)) + ((7/100) x (9,00,000)))/10,00,000) x 100 = 6.65%

FYI:
You earn ₹182.6 per day which earns you a cumulative interest of 0.01826% per day
You earn ₹5541 per month which earns you a cumulative interest of 0.5541% per month

Hope this helps you calculate and manage your funds in a better fashion. If you do have further queries, feel free to reach out to us!

P.S: Interest is calculated on End of Day balance.

Cheers,
Ashrith

2 Likes

Thanks a lot @ashrithjain . That detail was very satisfying.

Since the interest is calculated on daily balance and gets paid on a quarterly basis, how will the calculation work if I deposit any additional amount for 30days (ie deposit on 1st & withdraw on 31st)?

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