The benchmark expected annualized interest rate of the central bank is the annual expected annualized interest rate; For example, the expected annualized interest rate for loans with a term of more than five years is 6.55%, which means that the expected annualized interest rate is 6.55% every year; Not the total expected annualized interest rate for five years.

The interest of' a few cents' often mentioned in private lending usually refers to the expected annualized interest rate every month unless otherwise specified; 1 Dividends refer to the monthly expected annualized interest rate 1% and the annual expected annualized interest rate 12%.

When determining the interest rate level, the central bank or commercial bank considers the conversion relationship among annual interest rate, monthly interest rate and daily interest rate.

Divide the annual interest rate by 360 to convert it into daily interest rate, instead of dividing it by 365 or dividing the actual number of days in leap year by 366.

The conversion formula is:

Annual interest rate = monthly interest rate × 12 (month) = daily interest rate ×360 (day)

Monthly interest rate = annual interest rate12 (month) = daily interest rate ×30 (days)

Daily interest rate = annual interest rate ÷360 (days) = monthly interest rate ÷30 (days)