4.5% annualized means that the annual interest rate is 4.5%, that is, the annual interest is 4.5% of the deposit principal. Suppose the principal is 10000 yuan and the annual interest is 10000*4.5%* 1 (year) =450 yuan. If converted into monthly interest rate, it is 4.5% divided by 12 (month) =0.375%, and 1 month is 37.5 yuan interest. If converted into daily interest rate, it is 4.5% divided by 360 (days) =0.0 125%./kloc The calculation formula of interest is: principal * interest rate * term. For example, if you deposit 654.38+00000 yuan and the annualized interest rate is 4.5%, then the annual interest rate is 654.38+00000 * 4.5% = 450 yuan. If your deposit time is less than one year, the interest will be calculated according to the actual deposit time. If the deposit period is half a year, the interest is 10000*4.5%*0.5=225 yuan.

In real life, we can calculate the annualized interest rate in the following ways:

Query the interest rate table of bank deposit products.

Calculate with a calculator.

The creditor's rights enjoyed by financial institutions to borrowers are basically composed of loan principal and loan interest. The amount of loan principal is fixed and generally there is no dispute. The calculation of loan interest is complicated, and the premise of calculating interest is to determine the interest rate. Different interest rates will lead to different interest amounts. The problem of interest calculation is very complicated, because the loan interest rate is not fixed. According to the Regulations on the Administration of RMB Interest Rate, interest rates are divided into many categories. The loan interest rate and penalty interest rate of financial institutions are stipulated by the People's Bank of China, and the interest rate is closely related to the loan type and the borrower's performance.

To sum up, the annualized interest rate of bank deposits in China is generally low at present, and the interest rate of 1 year deposits is mostly below 4%.

Legal basis:

Provisions on the administration of RMB interest rate

Article 20

Short-term loans (with a term of less than one year, including one year) shall bear interest at the legal loan interest rate of the corresponding grade on the signing date of the loan contract. During the loan contract period, in case of interest rate adjustment, interest will not be calculated by installments.

Short-term loans are settled quarterly, and the 20th day of the last month of each quarter is the settlement date; If the interest is settled on a monthly basis, the 20th of each month is the interest settlement date. The specific interest settlement method shall be determined by the borrower and the lender through consultation. Interest that cannot be paid on schedule during the loan period shall be compounded quarterly or monthly according to the loan contract interest rate, and after loans overdue, at the default interest rate. When the last loan is paid off, the profit will be paid off with the principal.

Article 21

The interest rate of medium and long-term loans (with a term of more than one year) should be fixed at one year. The loan (including all the funds that should be allocated by installments within one year from the effective date of the loan contract) bears interest according to the legal loan interest rate of the corresponding grade on the effective date of the loan contract, and one year later, the interest rate of the next year is determined according to the legal loan interest rate of the corresponding grade at that time (the first loan is paid by installments). Medium and long-term loans are settled quarterly, and the 20th of the last month of each quarter is the settlement date. The interest that cannot be paid on schedule during the loan period shall be compounded quarterly according to the contract interest rate, and after loans overdue, it shall be compounded at the default interest rate.

Article 25

For overdue loans or misappropriated loans, from the date of overdue or misappropriated loans, penalty interest will be charged at the penalty interest rate until the principal and interest are paid off, and interest will be calculated by stages when the penalty interest rate is adjusted. Interest that cannot be paid on schedule during loans overdue or misappropriation shall be compounded quarterly (short-term loans can also be monthly) according to the penalty interest rate. Just like loans overdue's misappropriation, we should choose carefully and not combine.