Interest refers to the remuneration received by the owner of the capital for lending the capital. It comes from a part of the profit generated by the producer using the capital to perform operational functions. Interest is one of the manifestations of the time value of funds. From its form, it is the reward that currency owners receive from borrowers for issuing monetary funds.

Interest is the remuneration received by the owner of the funds for lending the funds. It comes from a part of the profits generated by the producers using the funds to perform operational functions. It refers to the value-added amount brought about when monetary funds are injected into and returned to the real economic sector. Its calculation formula is: interest = principal × interest rate × deposit period x 100%.

Judging from the current scope and space for China’s interest rate hikes and the development status of China’s stock market: the core question of whether it can attract residents’ savings to the stock market is: What are the money-making and safety benefits of the stock market? That is to say: if the investment benefit of the stock market is higher than the return of bank deposits when compared with its safety benefit, the choice of the stock market will be the main reason for the diversion of savings.