# 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.

## 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.

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

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

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

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