What is the average EUR balance?
Your interest is not calculated based on your balance on a single date, but on your average EUR balance for the respective month:
At the end of each calendar day, your EUR balance held with our partner bank is
recorded.
At the beginning of the following month, the average of all daily balances from the previous month is calculated.
Deposits and withdrawals during the month therefore have a proportional effect: Money that is only held in your account for a few days contributes less to your average balance than funds that are available for the entire month.
What does the 30/360 interest calculation method mean?
The 30/360 method (also known as the German interest calculation method) is a widely used method in banking for calculating interest days
Each month is calculated as having 30 interest days, regardless of whether it
actually has 28, 29, 30, or 31 calendar days.
The year is calculated as having 360 interest days (12 × 30 days).
This makes the interest calculation simple and predictable: With the same average
balance and the same interest rate, you receive the same amount of interest every month, whether it is February or July. The monthly interest therefore always corresponds exactly to one twelfth of the annual interest rate.
How your interest is calculated
Your interest accrues daily based on your balance and is paid out monthly. The formula for your monthly interest amount is:
🧮 Monthly interest = Average EUR balance × Interest rate p.a. × 30/360
The interest rate is a variable annual interest rate (p.a.) and is set by our partner bank.vYou can see the currently applicable interest rate at any time in the app.
Example calculation
Your average EUR balance for the month is €10,000, and the interest rate is 1.21% p.a.
Position | Calculation | Result |
Interest per day | €10,000 × 1.21% ÷ 360 | €0.34 |
Interest per month | €10.000 × 1.21% × 30/360 | €10.08 |
Interest per year | 25.00 € × 12 months | €121.00 |
The interest amount is rounded to the nearest cent.
Payment of your interest
Your interest is paid monthly and credited to your EUR balance in the 21bitcoin
app, at the beginning of the following month.
You will see the interest payment as a separate entry in your Activities overview.
Optionally, you can have each interest payment automatically converted into
Bitcoin. Find out how this works in the article “BTC Interest at 21bitcoin”.
ℹ️ If the calculated interest amount is less than €0.01 after rounding, no payment will be made for that month.
Frequently asked questions
Why does my interest amount differ from my current balance?
What matters is not your balance at the end of the month, but your average balance over the entire month. For example, if you make a larger deposit halfway through the month, it only contributes to your average balance for the remaining days.Do I lose interest because of the 30/360 method?
No, not in practice. Since each month is calculated as 30 days and the year as 360 days, the total of the 12 monthly payments corresponds exactly to the annual interest rate. Differences compared to other interest calculation methods are typically only fractions of a cent.Where does the interest come from?
The interest is earned on your EUR balance held with our partner bank and is passed on to you in full. You can optionally have your interest payment automatically converted into BTC.