DEFINITION of 'Daily Factor'
A decimal representing the portion of an annual yield earned in one day. Daily factors are often reported alongside current annualized yield figures, and can be translated back to the current yield by multiplying the number by 365.
INVESTOPEDIA EXPLAINS 'Daily Factor'
For example, a certificate of deposit that trades for a current annual yield of 5.35% will show a daily factor of (.0535 / 365) or .000146575
Daily factors are small amounts to be sure, but many highlevel banking and trust institutions will provide this daily interest calculation to their most important institutional accounts. The larger the pool of invested assets becomes, the more meaningful a daily factor calculation will be to the current account balances.
Daily factors are also frequently shown for Treasury bond quotes.

Par Value
The face value of a bond. Par value for a share refers to the ... 
Yield To Maturity (YTM)
The rate of return anticipated on a bond if held until the maturity ... 
Yield
The income return on an investment. This refers to the interest ... 
Current Yield
Annual income (interest or dividends) divided by the current ... 
Coupon
The interest rate stated on a bond when it's issued. The coupon ... 
Surrender Period
The amount of time an investor must wait until he or she can ...

Economics
Forces Behind Interest Rates
Get a deeper understanding of the importance of interest rates and what makes them change. 
Investing Basics
APR and APY: Why Your Bank Hopes You Can't Tell The Difference
Banks use these rates to entice borrowers and investors. Find out what you're really getting. 
Bonds & Fixed Income
Advanced Bond Concepts
Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration. 
Investing Basics
What is the effect of price inelasticity on demand?
Find out why price inelasticity of demand shows the relationship between demand and price if the price of an inelastic good is either lowered or raised. 
Investing
Reassessing Your Approach To Bond Investing
Rethinking your fixedincome portfolio may not resonate in quite the same way as dropping 10 pounds or finally giving up that smoking habit. 
Mutual Funds & ETFs
How much of my total assets should I be keeping in my money market account?
Investing a portion of total assets in a cash position such as a money market account provides investors access to funds in the case of an emergency. 
Bonds & Fixed Income
How does preferred stock differ from company issued bonds?
Discover the primary differences between preferred stock and corporate bonds, two incomegenerating investment vehicles issued by certain companies. 
Bonds & Fixed Income
What is the difference between yield to maturity and the yield to call?
Determining various the various yields that callable bonds can provide investors is an important factor in the bond purchasing process. 
Bonds & Fixed Income
How do I calculate yield to maturity of a zero coupon bond?
Find out how to calculate the yield to maturity for a zero coupon bond, and see why this calculation is more simple than a bond with a coupon. 
Bonds & Fixed Income
Why are bond yields calculated in terms of basis points?
Find out why financial analysts and publications track and quote bond yields in basis points, or bps, rather than simply stating percentages.