Listen to a Business English Dialogue About Day of deposit to day of withdrawal account
Evelyn: Hi Violet, have you heard about the “day of deposit to day of withdrawal” account?
Violet: No, I haven’t. What is it?
Evelyn: It’s a type of account where the interest is calculated based on the number of days your money stays in the account, from the day you deposit it to the day you withdraw it.
Violet: Oh, I see. So, the longer your money stays in the account, the more interest you earn?
Evelyn: Exactly! It’s a way for banks to incentivize customers to keep their money in the account for longer periods.
Violet: Are there any limitations or conditions associated with this type of account?
Evelyn: Yes, there may be minimum balance requirements or restrictions on the frequency of withdrawals to qualify for the full interest rate.
Violet: How is the interest calculated in a “day of deposit to day of withdrawal” account?
Evelyn: The interest is typically calculated using a simple interest formula based on the number of days your money is in the account and the interest rate.
Violet: Can you give me an example of how it works?
Evelyn: Sure! Let’s say you deposit $100 into the account on January 1st and withdraw it on January 15th. If the interest rate is 5%, you’d earn interest for the 15 days your money was in the account.
Violet: Thanks for explaining, Evelyn. “Day of deposit to day of withdrawal” accounts seem like a straightforward way to earn interest on savings.
Evelyn: You’re welcome, Violet. They can be a convenient option for earning interest while still having access to your funds when needed.