What is the difference between monthly interest calculation and daily interest calculation?

If interest is calculated on a monthly basis, the actual annual interest rate will not be affected and will still be 3.85%. If interest is paid monthly, the monthly interest rate is 3.85/12=0.32%, and the actual annual interest rate is (1+0.32%)^12-1≈3.91%.

Knowledge expansion:

The interest calculation formula is mainly divided into the following four situations.

First, the basic formula for calculating interest, the basic formula for calculating savings deposit interest The formula is: interest = principal × deposit period × interest rate;

Second, the conversion of interest rates, where the conversion relationship between annual interest rate, monthly interest rate, and daily interest rate is: annual interest rate = monthly interest rate × 12 (month) = daily interest rate × 360 (days); monthly interest rate = annual interest rate ÷ 12 (months) = daily interest rate × 30 (days); daily interest rate = annual interest rate ÷ 360 (days) = monthly interest rate ÷ 30 (days), In addition, the interest rate should be consistent with the deposit period;

Thirdly, the interest calculation starting point in the interest calculation formula is: 1. The interest calculation starting point for savings deposits is yuan, and the angle below yuan No interest will be paid on points; 2. The interest amount is calculated to the nearest cent, and the cents will be rounded to the nearest cent when actually paid; 3. Except for the annual settlement of current savings, which can transfer the interest to the principal to earn interest, all other savings deposits will be deposited regardless of the deposit period. No matter what, the interest will always be paid off with the principal when withdrawn, without compound interest;

Fourth, the calculation issue of the deposit period in the interest calculation formula, 1. The method of calculating the deposit period is to count the beginning and not the end; 2 , Regardless of big months, small months, ordinary months, or leap months, each month is calculated as 30 days, and the whole year is calculated as 360 days. 3. The maturity dates of various deposits are calculated based on the year, month, and day. In case of account opening If the date is a missing date in the expiration month, the last day of the expiration month will be the expiration date.

Deposit period calculation rules:

1. When calculating interest, the number of days of deposit is counted from the date of deposit to the day before withdrawal. only;

2. Regardless of leap year or ordinary year, regardless of the big or small month, the whole year is calculated as 360 days, and each month is calculated as 30 days;

3. For years, Calculated against the month and day, the maturity dates of various time deposits are calculated based on the year, month and day. That is, from the date of deposit to the same day of the same month of the next year, it is a pair of years, and from the date of deposit to the same day of the next month, it is a pair of months;

4. The expiration date of regular savings. For example, if you are not working during a legal holiday, you can If you withdraw one day in advance, interest will be calculated as if it is due, and the procedures are the same as for withdrawing in advance.

The formula for calculating interest is: principal × annual interest rate (percentage) × deposit period

If interest tax is charged, then × (1-5%)

Principal and interest Total = principal + interest

The calculation formula of accrued interest is: Accrued interest = principal × interest rate × time

Accrued interest is accurate to 2 decimal places and has been calculated The number of interest days is calculated based on the actual number of holding days. The difference between monthly repayment when due and monthly repayment based on daily interest

The difference between monthly due repayment and monthly repayment based on daily interest is as follows:

Monthly installment is equal monthly repayment of principal and interest. Monthly repayment is to pay interest every month and repay the principal when due.

Monthly repayment with daily interest and monthly repayment means paying interest every month and repaying the principal when due. However, there may be early repayment at any time. Prepayment will be based on the actual number of borrowing days. What is the difference between daily interest rate and monthly interest rate?

The conversion formula of daily interest rate, annual interest rate and monthly interest rate:

Daily interest rate (0/000) = annual interest rate (0/0)÷360;

Monthly interest rate (0/00) = annual interest rate (0/0) ÷ 12.

Monthly interest rate = daily interest rate × 30

Annual interest rate = monthly interest rate × 12

Interest = interest accumulation × daily interest rate

Formula

Formula 1: Daily interest rate = Daily interest ÷ Deposit (loan) amount Formula 3: Daily interest rate =? Annual interest rate ÷ 360

Extended information:

Factors affecting interest rates:

1. Central Bank’s policies

< p> Generally speaking, when the central bank expands the money supply, the total supply of loanable funds will increase, supply exceeds demand, and the natural interest rate will decrease; conversely, when the central bank implements a tightening monetary policy, reducing the money supply, loanable funds will Funds are in short supply and interest rates will rise.

2. Price level

The market interest rate is the sum of the real interest rate and the inflation rate. When the price level rises, market interest rates also rise accordingly, otherwise real interest rates 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 deposits and loans caused by loan demand being greater than loan supply will inevitably lead to an increase in interest rates.

3. Stock and bond markets

If the securities market is on the rise, market interest rates will rise; conversely, interest rates will also decrease relatively speaking.

4. International economic situation

Changes in a country’s economic parameters, especially changes in exchange rates and interest rates, will also affect the fluctuations in interest rates in other countries. Naturally, the rise and fall of the international securities market will also create risks for the interest rates faced by international banking business. Regarding the difference between loan interest calculation methods, interest calculation on a daily, monthly, quarterly and annual basis

In fact, it is easy to understand that it is the adjustment time of the interest rate. The central bank adjusts the interest rate, and the daily adjustment is the central bank's adjustment. The interest rate will be adjusted the next day, monthly means once a month, quarterly means once a quarter, and yearly means once a year. The interest rates are adjusted in a floating cycle.

Interest rate adjustment:

First, when the interest rate is a specific installment rate and the central bank adjusts the interest rate, the interest rate of the loans issued before the interest rate adjustment date will not be adjusted in the current year. The new interest rate will be applied on the 1st of the month; new loans issued after the interest rate adjustment date will be based on the adjusted new interest rate.

Second, when the interest rate is a segmented interest rate, when the central bank adjusts the interest rate, the loan execution interest rate will be adjusted on the same day.

Third, the interest rate is a floating interest rate, and the floating period can be monthly, quarterly, half-yearly or annually.

When the central bank adjusts interest rates, the loan interest rate will be adjusted in the next floating cycle. (Note: The floating period starts from the date of loan disbursement. For example, if a loan is issued on April 7, 2013, and the floating period is quarterly, then July 7, October 7, and January 7, 2013 are the floating periods. Starting date)