Different methods of calculating interest

Financial institutions adopt different methods of calculating interest:

* daily balance
* lowest balance in the month
* flat rate on initial loan amount
and other ways.

They apply different methods for different products. Usually, the method is aimed at charging more interest on loans or giving less interest on savings.

This is confusing to consumers. It is also opaque (not transparent) and unfair.

I saw a computer program that offer more than 10 different methods of computing interest.

I hope that financial institutions will adopt a simple and fair method, i.e. interest on daily balance computed on 365 days.