1. What is the FNB Credit Card Interest Calculator?

This calculator helps FNB credit card holders estimate their monthly interest charges and potential savings from making overpayments on their credit card balance.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( I \) — Monthly interest (ZAR)
• \( P \) — Principal balance (ZAR)
• \( R \) — Monthly interest rate (Annual rate ÷ 12, as decimal)

Explanation: The calculator first converts the annual interest rate to a monthly rate, then applies it to your current balance (minus any overpayment).

3. Importance of Interest Calculation

Details: Understanding your monthly interest charges helps with budgeting and demonstrates how overpayments can reduce your interest burden over time.

4. Using the Calculator

Tips: Enter your current balance in ZAR, the annual interest rate (%), and optionally any planned overpayment. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does overpayment reduce my interest?
A: Overpayments reduce your principal balance, which directly reduces the amount of interest charged each month.

Q2: What's a typical FNB credit card interest rate?
A: Rates vary but typically range between 15-25% annually depending on the card type and your credit profile.

Q3: When is interest charged on my credit card?
A: Interest is typically calculated daily but charged monthly if you carry a balance beyond the grace period.

Q4: Does this calculator account for compound interest?
A: This shows simple monthly interest. Actual credit card interest compounds, so your savings may be greater over time.

Q5: How can I reduce my credit card interest?
A: Make payments above the minimum, pay early in the billing cycle, or consider balance transfers to lower-rate cards.