The current benchmark "annual interest rate" for personal (RMB) loans with a term of more than 5 years announced by the People's Bank of China is 4.9%. If the interest on a deposit for one year is 10,000*4.9%=490 yuan. The interest for two years is 2*(10000*4.9%)=2*490=980 yuan, and so on. The benchmark interest rate for deposits and loans is the loan guidance interest rate issued by the Central Bank (People's Bank of China) to commercial banks. It is one of the monetary policies used by the Central Bank to regulate the operation of the social economy and financial system. Commercial banks will formulate a combination of deposit interest rates based on this benchmark interest rate. Raising the benchmark interest rate means shrinking credit, reducing social mobility, increasing credit costs, and slowing economic development. vice versa.

The content of this article comes from: China Law Press "Financial Code of the People's Republic of China: Applied Edition"