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

NOTE: See Calculation Details for All Dividend Methods for more detailed information about the dividend calculations covered in this topic.
Learn more about split rate and plateau types.

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 methodUnderstanding 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	x	Daily Rate	=	Daily Dividend Amount
xxxxxxx.xx		xx.xxxxxxxx		xxxxxx.xxx (rounded to 3 decimal places)

Daily Dividend Amount	x	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

Balance Calc. Amount	x	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)

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	x	Yearly Factor	=	Fractional Div Rate (FDR)
.xxxxx		x.xxxxxxxxx		xx.xxxxxxxxx (truncated to 9 decimal places)

FDR	x	(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	x	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	x	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)