Dictionary of Banking Terms: exact interest
exact interest
interest calculated on a 365-day year, as opposed to a 360-day year, which is known as ordinary interest. Banks use the 365-day basis in paying daily intereston certificates of deposit and other time deposits.
Dictionary of Business Terms: exact interest
exact interest
interest paid by a bank or other financial institution and calculated on the basis of a 365-day year, as opposed to ordinary interest, which is based on a 360-day year.
Dictionary of Finance and Investment Terms: exact interest
exact interest
interest paid by a bank or other financial institution and calculated on a 365-days-per-year basis, as opposed to a 360-day basis, called ordinary interest. The difference-the ratio is 1.0139-can be material when calculating daily interest on large sums of money.
