1. Interest will be calculated at the expiration of the deposit period

2. After transfer or automatic transfer, the total principal and interest of the previous period will be converted into principal, and interest will be calculated at the new interest rate.

3. after the expiration, the cycle will be repeated.

Off-balance-sheet interest:

1. On-balance-sheet interest: This is the on-balance-sheet interest calculation of loan assets before the loan expires in bank accounting. The basis of interest calculation is that the amount of the "loan" account in its balance sheet is generally automatically calculated, which means the "book value" of the bank. They are the interest receivable balances listed in the bank's balance sheet statement. Therefore, it is called "on-balance sheet interest".

2. Off-balance-sheet interest: the bank separately manages the loan assets that cannot be recovered at maturity, and transfers these loans to the "overdue loans" account for reflection, and then calculates them according to the basic interest rate and the interest rate calculated by default interest. For this kind of loan bank, it is reflected in the attached items in the balance sheet in accounting, that is, off-balance sheet reflection. Sometimes, this kind of loan may not be able to fully recover the principal, let alone the interest, but in order to maintain the integrity of the assets, it is necessary to list its value so that the readers of the report can know this kind of contingent loss.

calculation method of interest

1. introduction to the basic knowledge of interest

basic rules for bank interest calculation: 1. interest on savings is not compounded. 2. The starting point of the interest-bearing amount is RMB, and no interest is charged for the cents below RMB. 3. The interest amount shall be calculated to the decimal point, to the decimal point, and rounded off below the decimal point. When calculating the interest by segments, the interest of each segment shall be reserved to the decimal place (not reserved below the decimal place), and the total interest obtained by adding each segment shall be calculated to the decimal place, and the decimal place below the decimal place shall be rounded off. 4. Calculation of storage period: the beginning is not the end; Interest shall be calculated from the day of deposit to the day before withdrawal. That is, interest shall be accrued on the deposit date, and interest shall not be accrued on the withdrawal date. Regardless of the big month, small month, flat month and leap month, the storage period is calculated as 3 days per month.

basic formula for calculating interest by banks: interest = principal × interest rate × corresponding deposit period

2. How to calculate the interest of demand deposits: interest = daily product x current daily interest rate

The method for calculating daily product is to calculate the interest-bearing product during this period by taking the current change of deposit balance x the actual number of days of this balance. When calculating the total product, add up the products of each period.

current daily interest rate = current annual interest rate /36 days

3. How to calculate the interest of fixed deposit and convenient deposit

If the deposit period is less than three months, it will be calculated as current deposit, and if it is more than three months, it will be calculated at a 6% discount on the interest rate of fixed deposit of the same grade. If the deposit period is more than one year (including one year), no matter how long the deposit period is, the whole deposit period will bear interest at a discount of 6% according to the one-year deposit rate on the withdrawal date.

formula: interest = principal x deposit period x interest rate X6%.