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Money Market, Day Count, and Annuity Rates

Money-market yield, day-count, banker-year, and annuity-rate terms used in banking rate conventions.

Money market, day-count, and annuity rates are rate conventions that depend on how days, periods, and payment streams are counted.

Use this branch when a banking or money-market quote uses a calendar convention, a 360-day year, a bill-style yield, or an annuity-style rate rather than a simple deposit APY.

Key Terms in This Branch

TermWhat it clarifies
Actual/360Interest calculation using actual elapsed days over a 360-day denominator.
Banker’s YearA 360-day convention used in some interest calculations.
Money Market YieldA quoted yield convention for short-term money-market instruments.
Annuity RateA rate used to translate between periodic payments and present or future value.

Why It Matters

Day-count and money-market conventions can change the dollar interest accrued over the same calendar period. A rate may look lower or higher simply because it is quoted on a different basis.

What to Verify

  • Calendar days, start date, end date, settlement date, and maturity date.
  • The day-count denominator: 360, 365, actual/actual, or another stated method.
  • Whether the rate applies to a deposit, loan, bill, note, lease, or annuity-style cash-flow stream.
  • Whether the quote is a yield, discount rate, payment rate, or internal calculation rate.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Actual/360

A convention that counts actual days in the period divided by 360, commonly used in financial markets for interest calculations.

Annuity Rate

An annuity rate converts a lump sum or present value into a stream of periodic payments.

Banker's Year

The Banker's Year is a financial convention that standardizes the length of a month at 30 days and a year at 360 days.

Money Market Yield

Money market yield is a quoted return measure for short-term instruments that helps compare cash-like investments.

Revised on Sunday, June 21, 2026