The conversion of seven-day annualized rate and annual interest rate can be started by calculating the two methods. The details are as follows: 1. Seven-day annualized rate of return. The seven-day annualized rate of return is the net income of the monetary fund per 10,000 fund shares in the past seven days.

Annual rate of return.

The daily returns of money funds will continue to change with the operations of fund managers and fluctuations in money market interest rates. In practice, it is unlikely that fund returns will remain unchanged for a year.

Income calculation formula: seven-day annualized rate of return = seven-day total rate of return (%) / 7 x 365. For example, if a currency fund has a total rate of return of 0.07% in the past seven days, then the average daily income in the past seven days

The rate is 0.01% (that is, one in ten thousand), and the seven-day annualized rate of return is 3.65% (0.07%/7x365). As an intuitive income indicator, the seven-day annualized rate of return is an important indicator for investors to choose investment funds. Usually

Financial products such as deposit interest rates, financial products, and reverse repurchases that you see often use annualized rate of return as the pricing method.

, 2. Annual interest rate The annual interest rate refers to the deposit interest rate for one year.

The so-called interest rate is the abbreviation of "interest rate", which refers to the ratio of interest amount to deposit principal or loan principal within a certain period.

Usually divided into three types: annual interest rate, monthly interest rate and daily interest rate.

The annual interest rate is expressed as a percentage of the principal, the monthly interest rate is expressed as a few thousandths, and the daily interest rate is expressed as a few thousandths.

Income calculation formula: annual interest rate = one-year interest ÷ principal × 100%. For example: if you deposit 100 yuan and the bank promises to pay an annual interest rate of 4.2%, then the bank will have to pay 4.2 yuan in the next year. The interest calculation formula is 100×4.2% = 4.2

Therefore, as long as you convert according to the calculation formula, you can understand the conversion of seven-day annualization and annual interest rate.

Annual interest rate refers to the deposit interest rate for one year.

The so-called interest rate is the abbreviation of "interest rate", which refers to the ratio of interest amount to deposit principal or loan principal within a certain period.

Usually divided into three types: annual interest rate, monthly interest rate and daily interest rate.

The annual interest rate is expressed as a percentage of the principal, the monthly interest rate is expressed as a few thousandths, and the daily interest rate is expressed as a few thousandths.

When the economic development is in a growth stage, banks' investment opportunities increase, the demand for loanable funds increases, and interest rates rise. On the contrary, when economic development is sluggish and society is in a period of depression, banks' willingness to invest decreases, and naturally there is a demand for loanable funds.

Demand decreases and market interest rates are generally lower.

Definition: Therefore, the seven-day annualized return can only be used as a short-term indicator. It can roughly refer to the recent profit level, but it cannot fully represent the actual annual return of this fund.

The average annualized rate of return of domestic money funds is about 3%, while the benchmark interest rate of one-year time deposits is 1.50%. As a cash management tool with excellent liquidity and safety, money funds are still an ideal short-term investment tool.

Savings Alternatives.

This indicator is mainly set up to provide investors with more intuitive data for reference when comparing the returns of monetary funds with other investment products.

In this indicator, the return rate in the past seven days is determined by seven variables. Therefore, the same return rate in the past seven days does not mean that the net income per 10,000 fund shares used to calculate the seven daily days is exactly the same.

The seven-day annualized rate of return is the annual rate of return converted from the net income of every 10,000 fund shares of the money fund in the past seven days.

High and low indicators: There are two indicators that usually reflect the return rate of money market funds: one is the 7-day annualized rate of return; the other is the income per 10,000 fund units.

As a short-term indicator, the 7-day annualized rate of return is only the fund's profit level information in the past 7 days and does not mean future income levels.

What investors really need to care about is the second indicator, which is the income per 10,000 fund units.

The higher this indicator is, the higher the real returns investors will receive.