Generally, people who buy financial products know that the seven-day annualized rate of return is a term that often appears, but not many people really understand what the seven-day annualized rate of return means.

The seven-day annualized rate of return is generally used to express the income of monetary funds. It refers to the average income level of the last seven days and is the data obtained after annualization.

The seven-day annualized interest rate is to average the return rate of the last seven days to calculate the one-year return rate.

For example, the seven-day annualized rate of return of a certain currency fund on that day is 2.18%. If the currency fund's income in the next year can maintain the same level as the previous seven days, then you can get 2.18% if you hold it for one year.

overall benefit.

From this point of view, the seven-day annualized rate of return can be used as a reference indicator, but it can only be used as a short-term reference for possible profit and loss levels, and it cannot fully represent the long-term income level of the corresponding product.

Take the balance profit on Du Xiaoman Financial Management as an example. If you want to know its exact income on the day, you need to calculate it by the income per 10,000 units. Funds for the day (yuan) * 10,000 income for the day/10,000. The seven-day annualized rate of return is used as the short-term

The indicators are still worthy of reference. If you want to understand the longer-term income of the fund, you can refer to the income of the past 6 months or the past year. In addition, the overall understanding and control of financial products still requires careful analysis by users themselves.

What does the seven-day annualized rate of return mean? Do you understand it this time?

At present, the average annualized rate of return of domestic money funds is around 2.5%, while the benchmark interest rate of one-year time deposits is 1.50%. As a cash management tool with very good liquidity and safety, money funds are still ideal.

Short-term savings alternatives.

However, some small and medium-sized banks currently issue bank smart deposit products through cooperation (sales) with Internet platforms, which have the advantages of high liquidity (interest can be calculated in installments or withdrawn in advance) and interest rates are higher than general time deposits.

The interest rate is around 4%-5.5%, which is still very good.

For example, there are some smart deposits issued by banks on the Duxiaoman Financial APP platform, such as the "Zhongbang Duobangli" bank deposit product, which calculates interest based on the period, with a maximum withdrawal yield of 5.0%. The interest starts on the day of transfer, and there is no limit on holidays and withdrawals.

Real-time deposit on the same day, support for withdrawal at any time, no limit.

What does the seven-day annualized rate of return mean?

After everyone understands it, you can make reasonable financial planning according to your personal circumstances and obtain good financial returns.