I. Definition

Interest is the use fee of money in a certain period of time, and it refers to the reward that money holders (creditors) get from borrowers (debtors) for lending money or monetary capital. Including deposit interest, loan interest and interest generated by various bonds. Under the capitalist system, the source of interest is the surplus value created by hired workers. The essence of interest is a special transformation form of surplus value and a part of profit.

1. Money other than the principal of 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. In a less abstract sense, interest generally 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 that the fund owner gets for lending the fund, which comes from a part of the profits that the producer makes by using the fund to play its operational functions. Refers to the value-added amount brought by monetary funds injected and returned to the real economy. The calculation formula is: interest = principal × interest rate × deposit period × 100%.

3. The classification of bank interest can be divided into bank interest receivable and bank interest payable according to the nature of banking business. 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.

Second, others.

According to Marxism, interest is actually a part of profit and a transformation form of surplus value. Money itself cannot create money, nor will it increase in value. Only when functional capital purchases means of production and labor with money can it create surplus value through the labor of hiring workers in the production process. Monetary capitalists share surplus value with functional capitalists by virtue of capital ownership. Therefore, the separation of capital ownership and capital use right is the inherent premise of interest generation. Due to the characteristics of reproduction process, the coexistence of capital surplus and capital shortage is the external condition for interest generation. When money is possessed by capitalists and used as a means to exploit the surplus value of hired workers, it becomes capital. Money performs the function of capital and gains additional use value, that is, the ability to produce average profits. All capitalists are driven by the interests of pursuing surplus value, and profits are converted into average profits. The average profit is divided into interest and income of business owners, which are owned by different capitalists. Therefore, interest, like profit in essence, is the transformation form of surplus value, which reflects the relationship between borrowing capitalists and functional capitalists and exploiting workers.