Thetownend.com

Let's say I receive (or pay) interest at a rate of 6% (or whatever) per year.

How do I (accurately) work out the daily rate of interest?

I found this and it seemed quite informative.

http://www.moneysavingexpert.com/banking/interest-rates

And this.

http://www.easypeasy.com/guides/article.php?article=253

To add, that was the first time I've found Bing more useful than Google. Search for anything on explanations of interest rates and Google is just full of banks and loan companies. Repeat it on Bing and you get information.

To take this thread off topic in record time, I want to say that Google's getting on my tits at the moment. Has anyone else noticed how you try to find somewhere that sells something you're looking to buy and nowadays it's not shops that fill Google, but review sites full of links to places that don't sell what you're looking for? (It's all fucking Kelkoo, ciao, shopzilla, reevoo, etc.)

If it's APR, then just divide by 365

I never knew that.  I had always assumed that the daily rate would involve taking the 365th root rather than a straight division.  Something like:

DR = [(1 + AR/100) ^ (1/365)] - 1

Where:
  DR = Daily Rate (%)
  AR = Annual Rate (%)

Thanks, that's what I was looking for. I had a feeling it was something to do with using the 365th root but couldn't get my head round the correct calculation. Must admit I started dividing the annual rate by 365 before realising the error.

I will derail it further by saying that I used Bing for the first time, googled "thetownend" and found this.
It made me chuckle.

http://www.readytogo.net/smb/showthread.php?t=455052

It's no error, lenders use average daily rate, which is why it's APR divided by 365. Helps you do away with the fancy maths.