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How is the Monthly Savings Interest Calculated?

Interest on your bitcoin savings is compounded monthly, and is calculated using the Compound Monthly Rate. This is a function of the Annual Effective Rate (AER), and is derived by the following formula:

 

the Compounding Monthly Rate is: 

0.106046%

where:
= Compound Interest Rate: monthly compounding interest rate
AER = Annual Effective Rate: as set by Magnr Savings

To calculate the Final Total Amount after the last compounding period, this can be found by using the formula as below:

where:
A = Final Total Amount: Initial Investment plus all Interest
P = Initial Investment: your first Deposit amount
= Compound Interest Rate: monthly compounding interest rate
n = Number of Compound Periods: number of times interest is paid out

Click here for some examples of how these are applied to your investment over a 12-month period.

 

Further Notes: 
- AER = Annual Effective Rate.  This also referred to as APY (Annual Percentage Yield) in the U.S.
- Actual Rate: 0.106045959 %
- Rates are to be entered as decimal figure on calculations (not percentage)
- quoted rate correct as of November 2016

 

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