At present, the Bank of Communications adopts the method of full interest calculation, charging five ten thousandths (.5%) of interest every day from the date when the consumption is recorded, and compounding interest every month.
for example, suppose miss d's billing date is 18th of each month and the due repayment date is 15th of the following month. Her bill on June 18th lists all her consumption records from May 19th to June 18th, with a credit card consumption of 1, yuan, and the billing date is June 14th. Therefore, the final repayment date of Miss D is July 15th, and the "payable amount in this period" is 1, yuan, and the "minimum repayment amount" is 1 yuan.
if miss d chooses to return all the arrears of 1, yuan on or before July 15th, then she doesn't need to pay any interest. And if Miss D only pays 1 yuan the minimum repayment amount on July 15th, she will be charged the interest from the bookkeeping date (June 14th) until it is paid off.
before July 18th, the next billing date, if Miss D doesn't pay off the remaining amount (including interest), there will be interest of 163.5 yuan in the current bill.
p>1×.5%×3(6 (June 14th-July 15th)+(1-1 )× .5 %× 3 (July 16th-July 18th) =163.5 yuan. The final repayment date of this bill is August 15th.
if miss d still fails to repay the loan in full on August 15th, the interest-free period from July 18th to August 15th will also be cancelled, and the interest of 163.5 yuan in the previous bill will also generate interest at the rate of five ten thousandths per day. This also means compound interest on a monthly basis.
As new interest is generated every day, the early interest will also generate compound interest. If Miss D can't pay off the arrears within three months, the interest will exceed 1, yuan. The longer the arrears, the greater the repayment pressure.
installment repayment is more favorable
If the funds can't be turned around for a while, you can also consider using installment repayment to repay the arrears. Although installment repayment does not generate interest, it has to pay a handling fee. The handling fee here is actually the "interest" charged by the bank in disguise.
At present, most of the cash installment services provided by Bank of Communications are three, six, twelve and twenty-four. The first installment fee is 2.79%, the sixth installment fee is 4.8%, and the twelfth installment fee is 8.64%, which will be collected in one lump sum at the first repayment.
the calculation formula is
handling fee for each cash installment = total installment amount × handling fee rate for each installment.
Let's still take Miss D as an example. If all the arrears of 1, yuan are paid in installments, she will have to pay 279 yuan, 48 yuan in six installments and 864 yuan in 12 installments according to the 2.79% handling fee of China Merchants Bank for three months. It can be seen that no matter which way, installment repayment is more cost-effective than the minimum repayment amount.
However, it is not always cheaper to repay by installments than to return the minimum repayment amount. For the arrears with a large amount that cannot be paid off at one time for a long time, the cost of installment repayment is relatively low to prevent interest from rolling. However, it is more cost-effective to choose the minimum repayment amount if the amount is low, the consumption accounting date is close to the final repayment date and it can be repaid in a short time.
if you don't want to go around the interest, the best way is to repay it in full and on time.