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Personal · Accounts · Instant Access Savings

How to calculate interest on Savings accounts

Revolut accrues and pays you interest on your savings balance daily. However, as per Lithuanian tax laws, we're required to withhold 15% taxes and remit them to tax authorities.

Interest accrues daily, but if your net interest is less than 0.01 in the corresponding savings currency, it won't be paid until the cumulative interest exceeds this amount.

Interest and tax calculation example

Consider a balance of DKK20,000 with a 3.5% gross annual interest rate, compounded daily, and subject to 15% tax withholding:

Day 2

  • Interest accrued: DKK20,000 * 3.5%/365 = DKK1.917808
  • Gross interest to be paid = DKK1.91 (Remaining DKK0.007808 keeps accruing till it becomes DKK0.01) = €0.2483 (Exchange rate: 1DKK = €~ 0.13, as of June 2025)
  • Tax to be withheld = €0.2483*15% = €0.037245
  • Tax withheld = €0.03 = DKK0.23
  • Interest Paid = DKK1.91 - DKK0.23 = DKK1.68
  • Closing balance = DKK20,000 + DKK1.68 = DKK20,001.68

Day 3

  • Interest accrued: DKK20,001.68 * 3.5%/365 = DKK1.917969
  • Gross interest to be paid = DKK1.92 (1.917969 + 0.007808) = €0.2496 (Exchange rate: 1 DKK = €0.13, as of Jun 2025)
  • Tax to be withheld = €0.2496 *15% = €0.03744
  • Tax withheld = €0.04 (0.03744 + 0.007245 from previous day) = DKK0.3
  • Interest Paid = DKK1.92 - DKK 0.3 = DKK1.62
  • Closing balance = DKK20,001.68 + DKK1.62 = DKK20,003.30