How is interest on Savings Accounts calculated and paid?
We'll pay interest daily on the balance of your Savings Account. This will be calculated at an annual rate indicated in the Savings Account 'Demand Deposit Information Summary' document available in the Revolut App. The annual rate may differ depending on the paid subscription plan you have with us.
The interest will be calculated based on the actual number of days in a year and the actual number of days in a month. The interest will begin accruing on the same calendar day after you deposit funds from your current account to the Savings Account.
You'll earn interest on your Savings Account balance in the Savings Account until the calendar day prior to you withdrawing the funds from the Savings Account.
As required by the Lithuanian law, we'll make a 15% withholding tax deduction, or a withholding on any interest before it's credited to your Savings Account.
For example, if you maintain a constant balance of 1,000 HUF in your account for a year with 2.50% p.a., compounded daily, then your balance increase over the year would include the interest earned on your initial deposit as well as the interest earned on any previous interest added to your account balance. Assuming a 15% tax withholding at source, let's calculate the balance after three days using the given example:
Day 1: 1,000 HUF
Day 2: 1,000 + (1,000 HUF X 2.50%/365) - 15%) = 1000.06 HUF
Day 3: 1000.06 + (1,000.06 HUF X 2.50%/365) - 15%) = 1,000.1 HUF