Hey there guys, I was just wondering as to how the calculation for the interest rates on outstanding balance works for Citibank.

Lets say the amount outstanding is RM1,000.00. I read on the FAQ on their website that a daily interest rate of 8.88% per anum is applicable.

Hence, would I be right in assuming that the 8.88% is divided by a year (365 days) and then charged on the outstanding sum daily?

By that calculation, it would be an interest of RM 0.243 cents for the first day.

And the interest on the subsequent days are calculated with the total outstanding (including interest already charged). Right?