# Interest calculation: 360 days vs 365 days



## Fideroiste (17 Dec 2009)

A chara,
I just saw a program on RTÉ saying how the banks calculate interest for the average joe vs special business accounts, 365 days vs 360 days respectively. Does anyone know if any of the Irish banks, building societies, etc. offer interested calculated on a 360 day bases vs the current main banks calculation based on 365 days?

N.D.,
Fi.

Ps.: Just in case anyone goes to look at the program on RTÉ player, previous programmes weren't there as of last Wednesday & didn't look like they were going to put up there either.


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## cnu (17 Dec 2009)

I saw this program, "Buyers Beware".  

Sorry, I know this is off topic..

one thing that set my mind was can we invest in any EU based bank like a German Bank? @-/


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## OPTIMUM (17 Dec 2009)

The programme was a load of nonsense. Assuming (large assumption) that a bank would pay the same interest rate, the difference on 3% for 1 year of 360 compared to 365 day basis is 0.03%. 
Given that the average rate earned according to the Central Bank is less than 1% for demand accounts (€46bln folks !!) I think the bigger issue is the rate paid for deposits compared to the rates charged for overdrafts (>5%). 
And finally, corporate clients do not get retail bank rates, as banks cant afford to pay them - so 360 or 365 day basis is irrelevant if the rate is different. PBHayes got lost in his self-created confusion and missed a bigger story about the overall savings market rates IMO>


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