Balance Calculation Method Clause Samples
The Balance Calculation Method clause defines how the outstanding balance of an account, loan, or financial obligation is determined at any given time. Typically, this clause specifies the formula or process for calculating the balance, such as including or excluding accrued interest, fees, or other charges, and may outline the timing or frequency of such calculations. By clearly establishing the method for determining balances, this clause ensures transparency and consistency, reducing the risk of disputes between parties over payment amounts or obligations.
Balance Calculation Method. We use the daily balance method to calculate interest on your account. This method applies a daily periodic rate to the balance in your account each day. Certain accounts have tiered rates. This means that the interest rate you earn will depend on the daily balance in your account. For purposes of determining the principal balance on which interest is calculated, we include deposits on the business day the deposit is considered to have been made (see the Ability to Withdraw Funds Disclosure for the definition of the term “business day” and an explanation of when a deposit is not considered made on the day you deliver checks to us).
Balance Calculation Method. We use the Average Daily Balance Method to calculate the dividends on Your account. The Average Daily Balance Method is the application of a periodic rate to the average daily balance in the account for the period. The Average Daily Balance is determined by adding the full amount of principal in the account for reach day of the period and dividing that figure by the number of days in the period.
Balance Calculation Method. We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day. The principal balance used to calculate interest is the balance on which interest has begun to accrue (see Section 6.2 above).
Balance Calculation Method. We use the daily balance method to calculate the dividends on your account. This method applies a daily periodic rate to the principal in the account each day. The principal balance used to calculate dividends is the balance on which dividends have begun to accrue (see Section B-2).
Balance Calculation Method. The daily balance method to calculate and pay interest. By means of this method, the interest rate is applied daily to the principal during every day of the term of the certificate.