The average balance of a bank account is a tool that is used to calculate the interest at the end of the accounting period; the latter can be quarterly, semi-annual or annual basis. Lately, the average balance is also calculated to see if the current account is subject to stamp duty per year; it must be paid if the average balance of the account exceeds 5000 dollars. Run the calculation of the stock is very simple and can be done very quickly: so let’s see, step by step how to proceed to perform this calculation.
Make sure you have at hand …
- Excel Spreadsheet
- Never forget: Compute carefully
1) In order to do this you need a computer and possibly an Excel spreadsheet. You need to open the Excel spreadsheet and build a table with four columns that scored: date, day, sums and sums for days. We must now take the statement of the current account or savings account and go to check all movements that have been made: we must then mark them one by one chronologically. In the column of data, you need to use the value date, in that of the days you have to mark the days elapsed from the previous step to the next, in the amounts necessary to indicate the balance and not the movement amount. In addition, they will have to perform all the tasks one by one, remembering multiplication of days for the sums of the numbers must be carried out in the last column.
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2) When you have obtained the sum of the numbers, we must not do is use it. The first thing to do is to divide it by 365: in this way, we calculate the average stock. The latter is the number that is obtained through this division and indicates how much is left on average in the current account. The figure you get is useful to understand if the current account is subject to tax or not to stamp, but is also used to calculate the gross interest accrued, which the process that follows will calculate.
3) The calculation of interest, once it was found the sum of the numbers and the average balance, it is fairly simple to perform. In fact, it can simply take the average stock and calculate the percentage of interest, which the bank agreed when you opened the account or booklet. From the gross interest can be calculated as net, as it will simply subtract 27% by way of tax replacement. In short, the calculation of average stock is definitely an operation useful and, as you noted quite simple to perform.