After the credit limit of a credit card is used up, the excess amount used is counted as an overdraft. For this part of the overdraft amount, the Bank will charge interest fees according to certain standards. This is an overdraft interest rate of 0.05 per day.

There are two types of overdraft interest.

First, overdraft consumption interest: the interest rate is 0.05 per day, but credit card overdraft consumption generally has an interest-free period of 25 to 56 days. As long as the cardholder repays the amount on time and in full, they can enjoy this offer; if you do not pay in full, the bank will calculate interest from the date of your consumption until you pay off the current bill.

The second is the interest on overdraft cash withdrawal: the interest rate is 0.05 per day, but there is no interest-free period. Cardholders are required to repay the cash withdrawal amount plus interest on time. It can be seen that whether it is overdraft consumption or overdraft withdrawal, the interest rate is very high. Therefore, we should think carefully to avoid failure.

Interest rate refers to the ratio of the amount of interest to the amount of borrowed funds (principal) within a certain period of time. Interest rate is the main factor that determines the level of corporate capital costs. It is also a decisive factor in corporate financing and investment. Research on the financial environment must pay attention to the current status of interest rates and their changing trends.

The interest rate is the ratio of the amount of interest due each period on the amount borrowed, deposited or borrowed (called the total principal) to the face value. The total interest on the amount lent or borrowed depends on the total principal amount, the interest rate, the frequency of compounding, and the length of time it is lent, deposited, or borrowed. Interest rate is the price a borrower pays for borrowing money, and it is the return the lender earns from lending to the borrower by delaying his or her consumption. The interest rate is usually calculated as a percentage of the one-year interest to the principal.

Generally speaking, interest rates vary according to the term standard of measurement, and are represented by annual interest rates, monthly interest rates, and daily interest rates.

In the modern economy, interest rates, as the price of funds, are not only restricted by many factors in the economy and society, but also changes in interest rates have a significant impact on the entire economy. Therefore, modern economists are studying the effects of interest rates. When deciding issues, special attention is paid to the relationship between various variables and the balance of the entire economy. The interest rate determination theory has also experienced the development of classical interest rate theory, Keynesian interest rate theory, loanable funds interest rate theory, IS-LM interest rate analysis and contemporary dynamic interest rate models. Evolution and development process.

Keynes believed that savings and investment are two interdependent variables, not two independent variables. In his theory, the money supply is controlled by the central bank and is an exogenous variable with no interest rate elasticity. At this time, currency demand depends on people's psychological "liquidity preference."

The loanable funds interest rate theory that followed was the interest rate theory of the neoclassical school, which was proposed to revise Keynes's "liquidity preference" interest rate theory. To a certain extent, the loanable funds interest rate theory can actually be seen as a synthesis of the classical interest rate theory and Keynesian theory.

The famous British economist Hicks and others believed that the above theory did not consider income factors and therefore could not determine the interest rate level. Therefore, in 1937, they proposed the IS-LM model based on the general equilibrium theory. This establishes a theory that interest rates and income are determined simultaneously under the interaction of four factors: savings and investment, money supply and money demand.

According to this model, the determination of interest rates depends on four factors: savings supply, investment demand, money supply, and money demand. Factors that lead to changes in savings investment and money supply and demand will affect the interest rate level. This theory is characterized by general equilibrium analysis.

This theory organically unifies the commodity market equilibrium of classical theory and the currency market equilibrium of Keynesian theory under a relatively strict theoretical framework.

Marx’s interest rate determination theory is an interest rate theory that considers the role of institutional factors in the determination of interest rates from the perspective of the source and essence of interest. The core of its theory is that interest rates are determined by the average profit rate. Marx believed that under the capitalist system, interest is part of profit and a form of conversion of surplus value.

The independence of interest is of positive significance in truly demonstrating the active role played by fund users in the reproduction process.