For example:
If you have a $1,000 debit balance in Ready Access for the first five days of the month and a $25,000 debit balance for the second five days of the month, with no debit balance thereafter, you would have an average debit balance of $13,000 for the first 10 days of the month. This is calculated by adding the debit amount for each of the 10 days it is outstanding, then dividing by the number of outstanding days for an average debit balance of $13,000 ($130,000/10 = $13,000).

If the interest rate was 6.5% for the first five days the debit was outstanding and 6% for the second five days, the average interest rate would be 6.25%. This is calculated by adding the first five days’ interest rate for each day the debit balance is outstanding (five days x 6.5% interest rate), then adding the second five days’ interest rate for each day the balance is outstanding (five days x 6% interest rate), then dividing the total by the number of days the entire balance was outstanding (10) to arrive at an average interest rate of 6.25% (32.5 + 30 = 62.5; 62.5/10 = 6.25).

Since there wasn’t a debit balance during the remainder of the month, those days would not be used in the averaging calculations. To find the interest charge per day, multiply the average debit balance of $13,000 by the average interest rate of 6.25%, then divide by 360 days. Multiply this amount by the number of days the debit was outstanding (10 in this example) to find the interest charge for the month.

Average Debit

Average Interest Rate

Year

Number
of Days

Interest Charge

$13,000

x

6.25%

÷

360

x

10

=

$22.57


Account services and charges are subject to change.

10 Interest will be assessed at Raymond James & Associates highest Ready Access (margin) interest rate (prime plus 3.25%) for payments received after settlement date.