How to calculate the interest rate for bank deposits

 When you first deposit, you will be introduced by tellers and directed to bank deposit packages with different interest rates. Bank interest rates will depend on the cycle and the time you deposit short or long term. So how to calculate the interest rate for bank deposits?

Guidelines for calculating interest rates on bank deposits

Usually, the longer the term of savings deposit the higher the interest rate, the short term is from 1 week, 1 month to 6 months; long terms last from 6 months to 36 months.

In addition, you can send demand savings, withdraw money anytime, anywhere according to your needs without waiting for the expiry of the term.

Calculation of demand savings interest rate

1. Interest amount = Deposit amount x interest rate (% / year) x number of days actually deposited / 360

Method of calculating interest rates for savings deposits

Interest = Deposit amount x interest rate (% of year) / 12 x number of months deposited

or

Interest amount = Deposit amount x interest rate (% year) x number of days deposited / 360

Example: A customer deposits a bank of VND 50 million with an interest rate of 1.5% per annum and withdraws after 6 months, the bank has a range of 50,000,000 x (1.5% / 12) x 6 = 375,000 VND

Note:

1. Term savings deposits will receive higher interest rates than demand savings deposits.
2. If you withdraw money in accordance with the committed deadline, you will receive the full interest rate.

How to calculate the interest rate for bank deposits Picture 1

Micah Soto

Update 01 February 2020