1. What is M-Shwari Savings Interest?

M-Shwari savings interest is calculated based on your account balance, the annual interest rate, and the number of days the money remains in your account. It uses daily compounding to calculate the interest earned.

2. How Does the Calculator Work?

The calculator uses the M-Shwari interest formula:

Where:

• \( Balance \) — Account balance in Kenyan Shillings (KES)
• \( Rate \) — Annual interest rate as a percentage (%)
• \( Days \) — Number of days the money is held in the account

Explanation: The formula calculates daily interest by converting the annual rate to a daily rate (dividing by 365 days) and then multiplying by the number of days.

3. Importance of Interest Calculation

Details: Understanding how interest is calculated helps you maximize your savings returns and make informed decisions about your financial planning with M-Shwari.

4. Using the Calculator

Tips: Enter your account balance in KES, the annual interest rate as a percentage, and the number of days. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often is M-Shwari interest paid?
A: M-Shwari interest is typically paid monthly, but the calculation is done on a daily basis using the daily balance.

Q2: What is the current M-Shwari interest rate?
A: Interest rates may vary, so check the latest rates on the M-Shwari platform or Safaricom's official channels.

Q3: Is the interest compounded daily?
A: Yes, M-Shwari uses daily compounding, meaning interest earned each day is added to the principal for the next day's calculation.

Q4: Are there any fees that affect interest calculation?
A: While this calculator shows gross interest, remember that applicable fees or taxes may affect your net returns.

Q5: Can I use this for other savings accounts?
A: This formula works for any savings account that uses daily compounding, though specific terms may vary by institution.