Need a hand?

Just pop your question below to get an answer.

How to calculate interest on Savings Accounts

Interest accrues daily, but if your net interest is less than 0.01 HUF, it won't be paid until the cumulative interest exceeds this amount. As required by Lithuanian law, we'll deduct a 15% withholding tax from any interest before it's credited to your Savings Account.

EBKM quoted on the Revolut app and the Deposit Information Sheet has been calculated using the gross rate (i.e. a rate before the Lithuanian withholding tax) and a maturity period of 30 days.

Here's an example:

Consider a balance of HUF 1,000 with a 2.5% annual interest rate, compounded daily, with a 15% withholding tax applied:

Day 2

  • Interest accrued: 1,000 * 2.50%/365 = HUF 0.0684932
  • Payable interest: HUF 0.06 (remaining keeps accruing until it becomes 0.01)
  • Tax accrued: 0.06 * 15% = HUF 0.009
  • Tax withheld: HUF 0 (remaining accruing until it becomes 0.01)
  • Interest paid after tax: HUF 0.06
  • New balance: 1,000 + 0.06 = HUF 1,000.06

Day 3

  • Interest accrued: 1,000.06* 2.50%/365 = HUF 0.0684973
  • Payable interest: 0.06 + 0.01 = HUF 0.07 (considering interests accrued)
  • Tax accrued: 0.07 * 15% = HUF 0.0105
  • Tax withheld: HUF 0.01 (considering tax accrued)
  • Interest paid after tax: 0.07 - 0.01 = HUF 0.06
  • New balance: 1,000.06 + 0.06 = HUF 1,000.12