Batch interest settlement of loans means that the lender opens a current account with a small deposit in the bank, and the lender deposits a certain amount of cash, and then provides the current account and loan voucher to the bank staff.
Every quarter, the staff will go through the interest settlement formalities for a loan, and then both parties will check and sign it. At present, when a bank issues a loan, the loan amount is paid directly to the lender's deposit account, and the interest will be settled automatically on the 20th of each month, so there is no need to settle the interest in batches.
Automatic wealth management batch interest settlement generally means that customers sign an agreement with the bank to automatically convert the money on the bank card into wealth management products, and after reaching a certain amount, accumulate interest settlement. There are also some financial platforms that adopt this approach.
Batch interest settlement accounting entries?
Debit: Bank deposit-xx Bank
Loans: financial expenses-interest
Then, because you have a long time span, and during this span, the interest settlement in your account has not changed except the interest settlement, so the total interest settlement during this period is "batch interest settlement".
The bank calculates the interest of demand deposits once a quarter and records it in the balance of each account. This is called interest settlement.
Supplement: Brief introduction of bank interest settlement
1。 The Notice on Interest Settlement of RMB Deposits and Loans issued earlier by the People's Bank of China will be officially implemented on July 1 day.
2。 The new regulations change the current interest settlement method of personal demand deposits from annual settlement to quarterly settlement, allowing financial institutions to make their own interest and interest settlement rules for call deposits, agreement deposits, time deposits and time deposits, deposit and withdrawal, lump sum deposit and withdrawal, etc. under the principle of not exceeding the upper limit of the interest rate of deposits of the same grade in the same period of the People's Bank of China.
But now, after interest is calculated by file, if your deposit is less than 7 days in advance, interest will be calculated according to the current interest rate listed on the withdrawal date; If the deposit is made for 7 days but the withdrawal in advance is less than 3 months, the interest will be calculated according to the 7-day notice deposit rate listed on the deposit date; If the withdrawal is made in advance for 3 months but less than 6 months, the interest will be calculated at the fixed interest rate listed for 3 months on the deposit date; If it is withdrawn in advance after 6 months but less than 12 months, the interest will be calculated at the fixed interest rate listed for 6 months on the deposit date, and so on.