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.

Example

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