What is the bank's regular annualized interest rate?

Definition of annualized interest rate of banks

The annualized rate of bank refers to the rate of return obtained by investment banks' wealth management products within one year, which is also called the annualized rate of bank.

Of course, the annualized rate of banks will be different because of different wealth management products.

Banks generally have two kinds of wealth management products:

1, the bank's own wealth management products, such as deposits, have interest and annualized rate.

2. The bank's wealth management products, such as funds and trust products, are all based on the rate of return given by the institution, and the annualized rate should also be converted.

Whether it is a self-owned wealth management product or an agent wealth management product, it will be annualized, that is, the annualized rate of return, for comparison.

Generally speaking, it is mainly based on the bank's own wealth management products, generally based on time deposits. For example, the fixed interest rate of bank deposits is 1.5% for one year, 2. 1% for two years and 2.75% for three years.

Calculation formula of annualized interest rate

The formula of annualized rate is: annual rate of return = [(investment income/principal)/investment days ]*365× 100%.

The annualized interest rate, also known as the market-oriented interest rate, is set with reference to the bank benchmark.

This is also the annualized rate, because different financial products and institutions will be very different.

For example, the annualized rate of time deposits is higher and the annualized rate of floating deposits is lower.

What is the annualized rate of banks?

The annualized rate of banks is generally 1.55, which is similar to the interest rate of 1 year, that is, 1.5%. The interest rate of time deposit is not fixed and will change with the change of the benchmark interest rate of the central bank.

Suppose you deposit 100 yuan, the central bank's benchmark interest rate remains unchanged, the time period is 1 year, the interest is 1.5 yuan, and the annualized rate is 1.5%.

Calculation formula:100 *1.5% =1.5 yuan interest, and the formula is: interest rate = interest ÷ principal ÷ time × 100%.

Interest = principal × interest rate × time =100x1.5% =1.5 yuan, and the final withdrawal100+1.5 =10/kloc-0.

Annualized rate =1.5/100 *100% =1.5%.

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 in a certain period of time. Usually divided into 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 as a percentage, and the daily interest rate as a percentage.

When the economic development is in the growth stage, the investment opportunities of banks increase, the demand in loanable funds increases and the interest rate rises; On the other hand, when the economy is in a downturn and the society is in a depression, banks' willingness to invest will decrease, so will the demand for loanable funds, and the market interest rate will generally be lower.

influencing factor

Central bank policy

Generally speaking, when the central bank expands the money supply, the total supply in loanable funds will increase, the supply exceeds demand, and the natural interest rate will decrease accordingly; On the contrary, the central bank implements a tight monetary policy, reducing the money supply, so that loanable funds's demand exceeds supply, and interest rates will rise accordingly.

price level

Market interest rate is the sum of real interest rate and inflation rate. When the price level rises, the market interest rate also rises accordingly, otherwise the real interest rate may be negative. At the same time, due to rising prices, the public's willingness to deposit will decrease, while the loan demand of industrial and commercial enterprises will increase. The imbalance between deposit and loan caused by loan demand exceeding loan supply will inevitably lead to an increase in interest rates.

Stock and bond markets

If the securities market is on the rise, the market interest rate will rise; On the contrary, interest rates are relatively low.