Leap Year 2024: How Does It Affect My Finances?

Anyfin ABFebruary 14, 2024

Leap Year 2024: How Does It Affect My Finances?

Stockholm, 14 February 2024 – 2024 is a leap year, and February 29th falls on a Thursday. For most employees, this means an extra day in the office, factory, or store. Are we working an extra day for free? And how else does the leap year affect our finances?

A leap year can have positive impacts on the economy. After all, we have an additional workday to contribute to economic output. However, the impact on individuals' personal finances presents a mixed picture.

Type of Employment Matters

"How the leap year affects salary depends on the type of employment," says Lena Kamionka, a financial health expert at the fintech company Anyfin. "Those who receive a monthly salary work one day longer than in an ordinary February without extra pay. On the other hand, those paid by the hour have more money in the bank during a leap year."

For those on a monthly salary, this means: one more day until the next paycheck in March. "Even on that day, you need to eat, heat, and use electricity, which directly affects your bank account," says Lena Kamionka.

"At the same time, virtually everything you pay monthly for is 'free' on the leap day," Lena Kamionka continues. "Because companies do not adjust their costs for the extra day. This also applies to rent, for example. So, you could think that you live 'rent-free' on the leap day."

And the Interest?

Interest is calculated daily. On a savings account, there is an extra day for interest to accrue – meaning more money is added. "At the same time, more is due on loans, installment payments, credit cards, or overdrafts," says Lena Kamionka. "Over the entire year, the additional interest amount is about 0.3% higher. Depending on the size of the loan, this can either be negligible or make a significant difference."

Summary: How the Leap Year Affects Your Finances

  • Monthly salary? Work one day for free.
  • Hourly wage? More money in the bank.
  • One more day until the next paycheck, with food, electricity, heating, etc., to be paid.
  • 24 hours of rent-free living.
  • Higher interest accrued on savings accounts.
  • Higher interest due on loans.

Lena Kamionka is Financial Health Expert at Anyfin. As a writer, she combines her knowledge of the financial world with a passion for clear and accessible communication. Her focus is on transforming complex financial topics into understandable messages to assist customers with their debt management.

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Representative example

A refinancing loan of 5,000 SEK at 17.06% nominal interest rate with a repayment period of 18 months, with 18 installments of 317 SEK, results in a total effective interest rate of 18.46%. The total repayment amount will be 5,702 SEK.

The maximum amount that can be refinanced with Anyfin is 300,000 SEK. The loan term can be as short as 1 month and as long as 120 months, depending on the current term. The nominal interest rate can range from a minimum of 6.48% to a maximum of 19.90%. The effective interest rate can range from a minimum of 6.68% to a maximum of 22.01%.