What people call a few cents profit usually refers to a few percent of the monthly interest rate.

For example, a profit of 2 cents means a monthly interest rate of 2% and an annual interest rate of 24%.

Take 10000 yuan as an example. If the monthly interest rate is 2 cents, the annual interest is:10000× 2 %×12 = 2400.00 yuan.

Definition:

1. Funds other than the principal generated by deposits and loans (different from "principal").

2. The abstract interest point refers to the value added when monetary funds are injected into the real economy and returned. Generally speaking, interest refers to the remuneration paid by the borrower (debtor) to the lender (creditor) for using the borrowed currency or capital. Also known as the symmetry of sub-fund and parent fund (principal). The calculation formula of interest is: interest = principal × interest rate × deposit period (i.e. time).

Interest is the reward for the fund owner to lend the fund, which comes from a part of the profits formed by the producer to use the fund to play its operational functions. Refers to the value-added amount brought by monetary funds injected into the real economy and returned. The calculation formula is: interest = principal × interest rate × deposit term × 100%.

3. 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; This is also part of the bank's profits.