Dividend Calculation Methods Used by CU*BASE

Following is a “quick reference” showing formulas used by CU*BASE when calculating dividends and interest for savings and certificate accounts.

Click here for interest calculation methods for loan products.

SAVINGS

Average Daily Dividend Calculation

This method does not have any daily accrual; dividend amounts are determined only at the end of the dividend period when dividends are paid.  Learn more about this calculation method Understanding the Average Daily Balance (ADB) Dividend Calculation Method

Dividend Rate/100

÷

Days in Year

=

Daily Rate

 

 

365 (non leap year)

366 (leap year)

 

(truncated to 9 decimal places)

.xxxxx

÷

365/366

=

xx.xxxxxxxxx

 

 

 

 

 

Daily Rate

*

Days in the Period

=

Daily Factor

 

 

 

 

(truncated to 9 decimal places)

xx.xxxxxxxxx

 

*

xx

=

xxx.xxxxxxxxx

 

 

 

 

 

Accum. Balances

÷

Days in Dividend Period

=

Average Daily Balance (ADB)

Cumulative total; accumulated daily throughout the dividend period

 

Incremented by 1 for each calendar day throughout the dividend period

 

(truncated to 2 decimal places)

xxxxxxxx.xx

÷

xx

=

xxxxxxx.xx

 

 

 

 

 

Daily Factor

*

Average Daily Balance

=

Dividend Amount

 

 

 

 

(rounded to 2 decimal places)

xx.xxxxxxxxx

*

xxxxxxxxx.xx

=

xxxxxxx.xx

 

Simple Daily Accrual Calculation

Dividend Rate/100

÷

Days in Year

=

Daily Rate

   

365 (non leap year)

366 (leap year)

 

(truncated to 8 decimal places)

.xxxxx

÷

365/366

=

xx.xxxxxxxx

 

Current Balance

´

Daily Rate

=

Daily Dividend Amount

xxxxxxx.xx

 

xx.xxxxxxxx

 

xxxxxx.xxx

(rounded to 3 decimal places)

 

Daily Dividend Amount

´

No. of Days to Calculate

=

Dividend Accrual Amount

xxxxxx.xxx

 

xx

 

xxxxxx.xxx
(rounded to 3 decimal places)

·     NOTE: Payment of this dividend is truncated to two decimal points (for example: .038 is paid at .03 instead of .04)

 

Compound Daily Accrual Calculation

Dividend Rate/100

÷

Days in Year

=

Daily Rate

   

365 (non leap year)

366 (leap year)

 

(truncated to 8 decimal places)

.xxxxx

÷

365/366

=

xx.xxxxxxxx

 

Current Balance

+

Member Accrual Amount

=

Balance Calc. Amount

xxxxxxx.xx

 

xxxxxxxxxxxxx.xx

 

xxxxxxxxx.xx

 

Balance Calc. Amount

´

Daily Rate

=

Daily Dividend Amount

xxxxxxxxx.xx

 

xx.xxxxxxxx

 

xxxxxx.xxx
(rounded to 3 decimal places)

 

Daily Dividend Amount

+

Member Accrual Amount

=

New Member Accrual Amount

xxxxxx.xxx

 

xxxxxxxxx.xxx

 

xxxxxxxxx.xxx

 

If number of days is greater than zero, subtract 1 from number of days and restart calculation.

 

CERTIFICATES

CD Dividend Calculation Type A (Current Balance + Accrued Dividends)

1

÷

365 (or 366)

=

Yearly Factor

 

 

 

 

x.xxxxxxxxx
(truncated to 9 decimal places)

 

Div Rate/100

´

Yearly Factor

=

Fractional Div Rate (FDR)

.xxxxx

 

x.xxxxxxxxx

 

xx.xxxxxxxxx
(truncated to 9 decimal places)

 

FDR

´

(Current Balance + Accrued)

=

Daily Accrued

xx.xxxxxxxxx

 

xxxxxxxxx.xx

 

xxxxxxx.xxx
(rounded to 3 decimal places)

CD Dividend Calculation Type C (Current Balance)

1

÷

365 (or 366)

=

Yearly Factor

 

 

 

 

x.xxxxxxxxx
(truncated to 9 decimal places)

 

Div Rate/100

´

Yearly Factor

=

Fractional Div Rate (FDR)

.xxxxx

 

x.xxxxxxxxx

 

xx.xxxxxxxxx

(truncated to 9 decimal places)

 

FDR

´

Current Balance

=

Daily Accrued

xx.xxxxxxxxx

 

xxxxxxx.xx

 

xxxxxxx.xxx
(rounded to 3 decimal places

CD Dividend Calculation Type S (Face Value)

1

÷

365 (or 366)

=

Yearly Factor

 

 

 

 

x.xxxxxxxxx
(truncated to 9 decimal places)

 

Div Rate/100

´

Yearly Factor

=

Fractional Div Rate (FDR)

.xxxxx

 

x.xxxxxxxxx

 

xx.xxxxxxxxx
(truncated to 9 decimal places)

 

FDR

´

CD Amount

=

Daily Accrued

xx.xxxxxxxxx

 

xxxxxxx.xx

(face value)

 

xxxxxxx.xxx
(rounded to 3 decimal places

 

 

 

 

Link to ID: https://help.cubase.org/cubase/cubase.htm#DivCalcMethodsSHCD.htm