How to calculate interest on bank deposits?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today, the question of how to calculate interest on deposits is not difficult for those who have the Internet and plan to place their funds in a technically advanced bank. Such a credit institution, as a rule, places a calculator on the page for each type of deposits, which indicates how much money will be received based on the amount invested, the interest rate and the terms of the deposit.

Before calculating interest on deposits, it makes sense to study the terms of the contract in detail. For example, there are deposits where the stated relatively high interest is charged only if the amount "was" strictly until the end of the term. For example, if you put 100 rubles at 5 percent for 1 year, then according to the results of the year you will receive 100 x 0.05=5 rubles. If the money is withdrawn from the deposit ahead of schedule, then the amount may be 2 rubles, because. for this situation, interest is provided at a reduced rate (fixed or expressed in fractions of the figure specified in the conditions).

It's another matter if the conditionsThe agreement provides for the accrual of interest for a period of less than a year. How to calculate interest on deposits in this case? To do this, use the following formula: B (1+PK\Y\100)n - K, where K is the deposit amount, P is the interest rate, K is the number of days in each accrual period (month, quarter), G – number of days in a year (365, 366), n – number of accruals in a year (for monthly accrual – 12, for quarterly – 4).

If the interest calculation includes an amount that has already been calculated for the previous period, then the interest is calculated according to the formula: B multiplied by (1+P\100\n), where the expression in brackets is raised to the power of n. For example, you put 100 rubles at 10% per annum with interest accrued monthly, which you do not withdraw. Interest in this case will be received as 100(1+10\100\12), the figure in the bracket is raised to the 12th power.

Some credit organizations offer different interest rates on deposits for different categories of the population within the same program. Sberbank, for example, in some cases determines higher rates for people of retirement age (women over 55, men over 60). The general rule is this: the larger the amount of the deposit and the longer it is in the bank, the higher the interest. However, in the long term, other factors may affect the rates offered, including:

1. General economic situation. The better the economy develops, the greater the demand for loans, the higher the rate that banks canoffer to your contributors.
2. Stability of the national currency. The less stable the ruble, the more inflation, the higher the interest on deposits.
3. The financial condition of a particular financial institution and the system as a whole. If a credit institution has issued too many loans, then it may experience a cash shortage, which entails such a phenomenon as high deposit rates. Large financial structures, as a rule, do not offer improved conditions, because. they don't have to "pay extra" to their clients for risk.
4. Features of the tax policy of the state, the activities of the regulatory body, etc.

Recently, the appearance of "virtual" banks, which exist only as a web page, has been recorded. They may offer extremely high interest rates and other benefits. In this case, it is better to check the existence of such an organization on the website of the Central Bank, verify the TIN data, license numbers, the correct spelling of the name, the availability of office space, staff, because. otherwise, you can give money into the hands of scammers, and then the question “how to calculate interest on deposits” can be postponed indefinitely.