How do I calculate my interest payment?
We look at two different examples: 1. How is my interest calculated if I've chosen the installment facility as my payment method and have a signed a credit agreement? The interest calculation is based on the average outstanding amount between two monthly statements. This takes into account the outstanding balance for the prior period and installments for the current period. New purchases and cash withdrawals during the current period do not play any role in this interest calculation. The outstanding balance then attracts interest in full until an installment is paid. Once an installment has been made, interest is charged on the remaining amount until the next statement date. Sample calculation: 16.03.05 03.04.05 11.04.05 11.04.05 Outstanding balance in March CHF Payment Interest Outstanding balance in April CHF CHF CHF 3,056.10 2,211.65 24.95 869.40 Period of 18 days Period of 8 days (Outstanding amount of CHF 844.45 plus interest of CHF 24.95)
Formula for calculating interest:
Account balance x no. of days until installment is made x daily interest rate plus Outstanding balance less installments x no. of days until next statement date x daily interest rate
Based on an annual interest rate of 14.75%, the total interest of CHF 24.96 is calculated as follows: CHF 3,056.10 CHF 844.45 Total interest X X 18 days 08 days X X 14.75% / 365 days 14.75% / 365 days = = = CHF 22.23 CHF 2.73 CHF 24.96 (rounded to 24.95)
The rate of interest depends on the card product.
2. How is my interest calculated if my payment is late and I fall into arrears? Interest is charged only if the entire outstanding balance is not paid within the specified period of 20 days. Interest is calculated on the entire outstanding balance until payment is received. Please note that it may take 3-5 working days for your payment to reach us. This is normal for Swiss payment transactions.
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