How is daily periodic rate calculated by banks? 14.00% Annual. Daily periodic In

  1. profile image46
    malibunookposted 7 years ago

    How is daily periodic rate calculated by banks? 14.00% Annual. Daily periodic Interest of .000383562

    On $290.90 should my bank charge me $2.45 interest in 3-4 days lapse @ daily periodic Interest of .000383562%. It seems crazzy lot at that daily rate?
    Here is  the Running Overdft balance: $205.35 on 10/5, $54.31 on 10/6, $31.24 on 10/7. Fee Interest= $2.45 on 10/9. HELP.The bank's employees don't know didly- their answer is "Oh it's done by computer" blank stair.....

  2. Financial Help profile image60
    Financial Helpposted 7 years ago

    This is a very good question and thanks for asking it! When it comes down to it, most credit cards will come with a minimum finance charge. In this case it looks like your minimum finance charge is $2.45. I know that this comes on a balance that was only there for a couple days after the grace period but the way minimum finance charges work is, if there is a balance at the end of a grace period, it will be charged. I would say for more information, look at your card member agreement. It will tell you a bit more about your grace period and minimum finance charges. Also, I would like to invite you to my website, for more financial help articles! If you don't mind me asking, what bank is it that is charging you an interest rate of 14% even this is rare with US based banks, I may be able to direct you to a great balance transfer account with a lower long term rate as well. Take a look at the Discover more card or the Chase slate card at or also, follow me if you would like, I will be writing an article about compounding interest rates and minimum finance charges soon!