Interest Computation Method/Compounding Period. The interest on your account is calculated using the daily collected balance method. The collected balance is the balance of all deposits in your account on which we have received credit for the deposited funds (determined by the availability schedule of our Federal Reserve Bank for non-cash items). This method applies a daily periodic rate to the principal in the account each day. Interest is credited and compounded monthly. Interest on your account is compounded at the end of each statement cycle and is computed on a 365-day basis. We pay interest only in whole cents earned. The compounding period is defined as the period at the end of which your interest begins to earn interest. Compounded interest is computed on your collected account balance plus interest you have already earned. Thus, if you leave interest in your account, you earn interest on the interest.
