# How to calculate this interest rate MSA in DBS bank (SINGAPORE)?

This morning, I check Montly Saving Account of DBS bank Singapore. I tried with their calculator via this link and came up with this.

``````Total monthly savings   \$ 3,600.00

Total interest earned   \$ 7.84

Total balance   \$ 3,607.84
``````

Let's say...I save `\$300 monthly`, the `interest rate is 0.2` because the interest rate is tied to monthly saving amount (In this case: `\$300 - \$790 0.2000`). Please check this link

However, I am not clear on how the interest is calculated, could you guys don't mind sharing me the ideas? 0.2 means % per month?

If you read the last line on the first link you posted ...
"Rates quoted are in % p.a. and are subject to change without prior notice."

So the rate of 0.2% is per annum and not monthly.

The interest is calculated on monthly balance. For the first month [Jan] 300*0.2*31/365 = 0.05, for second month on 600 around 0.1 etc.

However I notice that the actual results are different, maybe the calculator is not using the rates published and the rates are different

• I also couldn't make the numbers in the calculator equal the ones on the rate sheet. Jul 13, 2012 at 10:56
• Actually I guess it would be calculated daily or on some sort of average balance. That may be why you cannot get it to match - lets say you have inserted 350 in the beginning of the month and over the course of the month you have spend 50, resulting in a "net-savings" of 300, your interest will then actually be more than above.
– ssn
Jan 24, 2018 at 8:45