Or interest = principal × interest rate× time

Deposit interest = principal x days x listing interest (daily interest rate) = interest-bearing days x daily interest rate

Interest tax = deposit interest (income tax payable) × applicable tax rate

Classification of bank interest:

According to the different nature of banking business, it can be divided into bank interest receivable and bank interest payable.

Interest receivable refers to the remuneration that the bank obtains from the borrower by lending to the borrower; It is the price that the borrower must pay for using the funds; It is also part of the bank's profits.

Interest payable refers to the remuneration paid to depositors by banks to absorb their deposits; It is the price that banks must pay to absorb deposits, and it is also part of the cost of banks.

Extended data:

1. The calculation formula of equal principal and interest loan: monthly repayment amount (referred to as monthly principal and interest) = loan principal x monthly interest rate ×[( 1+ monthly interest rate) repayment months ][( 1+ monthly interest rate) repayment months ]- 1.

2. Calculation formula of average capital loan: monthly repayment amount (referred to as monthly principal and interest) = (loan principal/repayment months)+(principal-accumulated amount of repaid principal) x monthly interest rate.

The latest loan calculator, the difference between two loan interest calculation methods.

These two calculation methods are different. The loan with equal principal and interest is calculated according to compound interest. The interest generated by the remaining principal shall be calculated together with the remaining principal (loan balance) at each repayment settlement.

In other words, unpaid interest should also be calculated, which seems to be more severe than "rolling interest". In foreign countries, matching principal and interest loan is recognized as a loan method suitable for the interests of lenders.

However, the average capital loan uses a simple interest rate method to calculate interest. At the settlement time of each repayment, only the remaining principal (loan balance) will bear interest.

It means that the interest on the outstanding loan is not calculated by the outstanding loan balance, but only by the principal. However, the longer the loan cycle, the more interest will be generated by matching principal and interest loans, rather than the interest generated by average capital loans.

Therefore, if the borrower cannot adjust (or choose) the repayment method, the borrower with longer loan term should choose the average capital loan.

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