Calculation: 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.
I. Annual interest rate:
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. The annual interest rate is expressed as a percentage of the principal, the monthly interest rate as a percentage, and the daily interest rate as a percentage. When the economic development is in the growth stage, the investment opportunities of banks increase, the demand in loanable funds increases and the interest rate rises; On the other hand, when the economy is in a downturn and the society is in a depression, banks' willingness to invest will decrease, so will the demand for loanable funds, and the market interest rate will generally be lower.
Second, the monthly interest rate:
The monthly interest rate refers to the monthly interest. The monthly interest rate is expressed as a few thousandths of the principal. The monthly interest announced by the bank is basically expressed after one year. For example, the annualized deposit interest rate for three months is 2.6% (the bank is listed), but the actual rate of return for the current period is only 0.65%, the annual interest rate is generally% (percentage), and the monthly interest rate is generally expressed as ‰ (one thousandth); The daily interest rate is expressed as a few tenths of the principal, which is usually called a few cents. If the daily interest rate is 1%, that is, the principal is 1 yuan, and the daily interest rate is 0.005438+0 yuan. (1% =0.00 1 yuan, one point =0.000 1 yuan) Calculation formula: daily interest rate _ annual interest rate ÷360= monthly interest rate ÷30.
Three. Conversion formula between annual interest rate and monthly interest rate:
The formula for converting annual interest rate into monthly interest rate is: monthly interest rate = annual interest rate/12. For example, the annual interest rate is 7.05%, which translates into a monthly interest rate of 7.05%/ 12=5.875‰. The deposit interest rate of general banks is expressed by the annual interest rate, while the interest rate of mortgage contracts is expressed by the monthly interest rate. The formula for converting annual interest rate into monthly interest rate is: monthly interest rate = annual interest rate/12. For example, the annual interest rate is 7.05%, which translates into a monthly interest rate of 7.05%/ 12=5.875‰. The deposit interest rate of general banks is expressed by the annual interest rate, while the interest rate of mortgage contracts is expressed by the monthly interest rate.
Expected annualized rate of return is the annual rate of return determined or calculated by banks and other institutions when issuing wealth management products. It is not fixed, but floating, that is, the wealth management products may or may not arrive when they expire. Even banks and other institutions cannot accurately predict the future, which requires customers to have self-judgment and psychological preparation when preparing to buy. The annual deposit interest rate is set by the People's Bank of China and submitted to the State Council for approval. It is mandatory and all financial institutions must conscientiously implement it.