I. Annual interest rate
1. The annual interest rate refers to the deposit interest rate for one year. The so-called interest rate is the abbreviation of "interest rate", which refers to the ratio of interest amount to deposit principal or loan principal in a certain period of time. Usually divided into annual interest rate, monthly interest rate and daily interest rate.
2. When the economic development is in the growth stage, the investment opportunities of banks increase, the demand for loanable funds increases, and interest rates rise; On the other hand, when the economic development is depressed and the society is in a depression period, the willingness of banks to invest decreases, the demand for loanable funds naturally decreases, and the market interest rate is generally low.
Two. Central bank policy
Generally speaking, when the central bank expands the money supply, the total supply in loanable funds will increase, the supply exceeds demand, and the natural interest rate will decrease accordingly; On the contrary, the central bank implements a tight monetary policy, reducing the money supply, so that loanable funds's demand exceeds supply, and interest rates will rise accordingly.
Three. price level
Market interest rate is the sum of real interest rate and inflation rate. When the price level rises, the market interest rate also rises accordingly, otherwise the real interest rate may be negative. At the same time, due to rising prices, the public's willingness to deposit will decrease, while the loan demand of industrial and commercial enterprises will increase. The imbalance between deposit and loan caused by loan demand exceeding loan supply will inevitably lead to an increase in interest rates.
Four. Stock and bond markets
If the securities market is on the rise, the market interest rate will rise; On the contrary, interest rates are relatively low.
Verb (abbreviation of verb) International economic situation
Changes in a country's economic parameters, especially the exchange rate and interest rate, will also affect the fluctuation of interest rates in other countries.
The change of interest rate of intransitive verbs
Annual interest. The annual interest rate is expressed as a percentage of the principal.
Seven. Calculation method
For example, if the deposit is 100 yuan and the bank promises to pay the annual interest rate of 4.2%, then the bank will pay 4.2 yuan interest in the coming year.
The calculation formula is 100×4.2% = 4.2 yuan.
The formula is: interest rate = interest ÷ principal ÷ time × 100%.
The final withdrawal 100+4.2= 104.2 yuan.