Question 1: Is the interest rate of a bank's one-year or multi-year fixed deposit a compound interest? 10 points The previous answer is incorrect and can easily mislead the poster. The so-called multi-year fixed deposit is a one-year fixed deposit. Compound interest is calculated based on the basic fixed deposit interest rate. In other words, the multi-year fixed deposit interest rate offered by banks to customers is compound interest!

Using an annual interest rate of 3% as an example, the two-year fixed deposit interest rate will not be: 1*3%*2 but should be: 1*(1+3%)^2=1.069, which is larger than the single profit form.

Similarly, if we deposit the interest rate in the bank in the form of three-month term, one-month term, or 7-day notice deposit, the interest rate given by the bank will also be based on the annualized rate. This makes it easier for customers to compare! The annualized rate of return with a monthly interest rate of 1.002 is: 1*1.002^12=1.024266

Question 2: The problem of compound interest on bank deposits. My idea is this:

Option 1:: Three-month unlimited transfer fixed deposit, 20 years; equivalent to you using compound interest at 2.6% to calculate interest 80 times (4x20), the sum of principal and interest after 20 years: 1000x (1+2.6%) to the 80th power = 1000x7.794510780702 =7795

Option 2: One-year unlimited transferable fixed deposit for 20 years; equivalent to compound interest at 3% interest rate 20 times, the principal and interest after 20 years:

1000x( 1+3%) to the 20th power = 1000x1.8061112346694 =1806

Option 3: Similarly, the sum of principal and interest after 20 years:

Four times of 1000x (1+4.75%) Square = 1000x1.2039712781641 =1204

Obviously the sum of cost and profit of plan 1 is much greater than plan 2,3

Of course, you can also calculate the annualized rate of return of the above three plans. , just compare the actual rate of return in a year. The one-year return rate of the plan: 1+x=(1+2.6%) to the fourth power, x=1.108126760976 -1=10.8%

The two-year return rate of the plan: 3%

The three-year return rate of the plan: 4.75%/5=0.95%

It can be seen that the annual return rate of plan 1 is still much greater than that of plans 2 and 3.

As for whether there are others A better way is to consider buying a fund, which is somewhat equivalent to entrusting your money to a fund manager for safekeeping. The fund manager will use the money to invest on your behalf, such as investing in corporate bonds, investing in stocks, etc., because it is generally combined Investment, so the risks are diversified to a certain extent, and then after you gain profits, you will be given corresponding returns based on your fund share. I'm not very clear about this, you can learn more about it.

Both fixed deposits and funds have relatively small investment risks. Of course, risks are always proportional to returns. If you want higher returns, you can speculate in futures and gold. , foreign exchange, etc. This risk is really high, and you may lose all your money. You need to have a keen insight into the market, policies, and economic environment; stocks are not recommended. It feels very deceptive and there is no profit.

The above are some of my thoughts, which may not be accurate. Welcome to discuss them together.

Question 3: How to save money with compound interest in the bank? 1. Just bring your ID card to the bank to apply for opening an account, and then get a passbook.

2 Deposits based on compound interest refer to withdrawing the full amount and interest before depositing after a deposit cycle. This is due to the difference in the bank's formula for calculating interest. Let’s give a simple example:

If you deposit 10,000 yuan for two years, there are two ways:

One is to deposit at a 2-year interest rate of 2.79%, and the interest on the maturity date will be It is: 10000*(1+0.0279*2)=10558 yuan.

The second is to deposit twice at a one-year interest rate of 2.25%. The interest on the maturity date is: 10000*(1+0.0279)^2=10510 yuan

This is compound interest. .

From the above comparison, you can see that since the interest rates for two-year and one-year periods are different, compound interest does not necessarily lead to higher interest rates, but many times, people are still willing to choose the second option. The reason is that if interest rates are expected to rise, that is, if the one-year interest rate is raised to 3% in the second year, it will exceed the two-year interest rate. So whether to choose compound interest depends on your judgment of future interest rate trends.

Question 4: Is China Construction Bank’s deposit interest simple interest or compound interest? For current deposits, banks calculate interest every three months, generally on the 21st of the last month of each quarter, that is, March-21, June-21, September-21, and December-21 of each year. If you deposit 3,000 yuan, the bank will settle the interest with you 20 times in 5 years. The interest on the first settlement will be included in the principal, and the interest will be calculated together on the second settlement. And so on.

The current interest rate for the first quarter of 3,000 yuan is 3,000*0.0036/4=2.7 yuan (deposit balance * current interest rate 0.36% divided by 4, because there are 4 quarters in a year). The interest in the second quarter is 3002.7*0.0036/4=2.7024 (according to the bank's accuracy, rounding, the interest is still 2.70 yuan).

If the deposit is 30,000 yuan, the interest in the first quarter is 27 yuan, the second quarter is 27.0243 yuan (rounded to 27.02 yuan), and so on.

Question 5: Is bank interest calculated based on simple interest or compound interest? When depositors deposit money in banks, deposit interest is calculated based on simple interest.

When you buy a house, you get a loan from a bank, and when the bank disburses money, it is calculated based on compound interest.

Question 6: Is the bank’s current interest settlement method compound interest or simple interest 1 Calculation of demand deposit interest:

Principal × 0.81% (annual interest rate) × actual number of days of deposit / 360 × 0.95 (interest tax deducted) =

It is simple interest before the interest is settled. After the interest is settled each quarter, the interest earned will generate new interest, which can be understood as compound interest.

2 Time deposits, such as rounded deposits over three years, the maturity interest calculation is:

Principal × 5.22% × 3 × 0.95 =

Time deposit It is simple interest before maturity. If you do not withdraw it at maturity, the bank will automatically transfer it to your original deposit period, and the interest earned will generate new mutual interest. This can also be understood as compound interest.

The latest deposit interest rate: bank-of-china/...%C2%CA

I’ll give you ICBC’s “Financial Management Calculator”. You can do the calculations yourself. It’s very convenient. You might as well try it.

icbc/calculator/calculator_per.jsp

Question 7: Do bank time deposits calculate compound interest? Bank time deposits do not calculate compound interest and are simple interest during the deposit period.

If not withdrawn at maturity, the interest earned and the original principal will be combined into a new principal, which will be automatically transferred to the next deposit period.

Time deposit is a one-time settlement of interest upon maturity.

For example: If you make a one-year deposit today, the bank will not settle the interest until today next year. During this one-year period, there will be no compound interest.

Question 8: Bank deposits, how to calculate compound interest on deposits, please give me some advice~! 5 points Domestic bank deposits earn simple interest in each cycle. Compound interest is calculated only after completing one cycle and entering the next cycle.

However, bank deposits mainly depend on interest rates. At the same time, the return from compound interest will not be higher than simple interest.

Assuming that the interest rate remains unchanged, compare the current one-year fixed rate of 3.0% with the two-year fixed rate of 3.75%.

1. Compound interest calculation, that is, automatic renewal after the expiration of one year.

One-year periodic principal and interest for two periods = 1*(1+3.0%)^2=1.0609

2. Simple interest calculation is a two-year period.

The two-year regular principal and interest of a cycle = 1*(1+3.75%*2)=1.075

Note: ^ is the power.

I hope the above answers are helpful to you.

Question 9: Do all bank deposits accrue compound interest, including demand and time deposits? The main interest calculation methods of domestic banks are as follows: demand, the interest for this quarter is calculated on the 21st of the last month of each quarter, and To return it to capital is to calculate compound interest. If it is not set to "automatic rollover" on a regular basis, it will be calculated as simple interest. If it is set to "automatic rollover", the interest will automatically be returned to the principal after each maturity, that is, it will be calculated as compound interest. All calculations are based on simple interest within the fixed period. For example: for a three-year term, simple interest is calculated based on the published interest within three years. After three years, the interest for three years is added to the principal, and then the interest is calculated together, that is, compound interest.

Question 10: Is bank deposit simple interest or compound interest? For time deposits, if it is agreed to be automatically transferred and the interest is added to the original deposit, it is equivalent to compound interest. Now in some banks, depositors do not declare automatic transfer. If the original agreed deposit period is reached in the future, it will be regarded as a transfer, which is equivalent to calculating compound interest (I have encountered this situation). However, if the money is withdrawn before the expiry of the second storage period, interest will be calculated based on the expiration date. After the demand deposit interest is calculated, of course the deposit amount is added, which conceptually means compound interest is calculated.