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* **Death Benefit:** Provides financial security for your beneficiaries.
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Let’s get into the details of **how interest is calculated** on your ICICI credit card. Understanding this is key to grasping how paying only the minimum can lead to significantly higher charges. The interest on your ICICI credit card is usually calculated daily. The daily interest rate is determined by dividing your annual percentage rate (APR) by 365 (or 366 in a leap year). The interest is then charged on your outstanding balance, starting from the date of the transaction. The interest calculation considers your average daily balance, which is the sum of the outstanding balance for each day in your billing cycle, divided by the number of days in the cycle. This means every day you have an outstanding balance, interest is accruing. When you make a payment, the payment is applied to the balance, which reduces the amount of interest you're charged for the remaining days of the billing cycle. It's really a rolling process of accumulating interest until your balance is paid off.
