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.
16.03.05 Outstanding balance in March CHF 3,056.10 Period of 18 days
03.04.05 Payment CHF 2,211.65
Period of 8 days
11.04.05 Interest CHF 24.95
11.04.05 Outstanding balance in April CHF 869.40 (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
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 X 18 days X 14.75% / 365 days = CHF 22.23
CHF 844.45 X 08 days X 14.75% / 365 days = CHF 2.73
Total interest = 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.