Daily rate

The daily rate of interest (or yield) is a quoting convention for the simple interest nominal annual rate for compounding once per day.

For example:

if the quoted daily rate is 5.11%,

the amount of interest compounded daily is

5.11%/365 = 0.014%.

Not to be confused with the annual effective rate, which in this case would be 1.00014³⁶⁵ - 1 = 5.24%.

See also

• Annual effective rate
• Compounding effect
• Nominal annual rate
• Periodic rate of interest