How To Calculate Savings Interest Rates In 2020
Quickly look up bank interest rates, gold exchange rates, foreign exchange rates, calculate savings interest rates, calculate loan interest rates. . Each type of savings deposit will also have different interest rates. Specifically:
Interest rates on-demand savings deposit
A demand deposit is a type of savings deposit without registration of the attached term limit. Depositors can withdraw cash at any time without prior notice to the bank.
Based on the characteristics of this deposit, you will have the following calculation of interest rate on-demand savings deposit:
The interest will be calculated based on the initial deposit multiplied by the demand savings interest rate (% / year), then multiplied the actual number of days and divided by 360
(the number of days in 1 year according to the bank’s regulations. ).
Interest = Deposit amount x interest rates (% / year) x number of days actually deposited / 360
Example: You save $1,000 without any term at the bank, the interest rates is 1.5% / year. The time to withdraw deposit is after 6 months, we will receive the correct interest rate of 1.5%.
Interest = Deposit x 1.5% / 360 x 180 = 1,000 x 1.5% / 360 x 180 = $75
How to calculate savings interest rates on term savings deposit?
Term deposit is a type of savings deposit which can only be withdrawn after a certain period of time as the depositor committed to the bank. The bank will offer many different terms for customers to choose from (weekly, monthly, quarterly, year …).
- Interest = Deposit amount x interest rates (% year) x number of days / 360.
- Interest = Deposit amount x interest rates (% year) / 12 x number of months.
With the term rate calculation, the interest rate is higher. Timely withdrawals will receive full interest rates. If applying for time savings deposit but withdrawing before maturity date, the interest will be calculated by the demand interest rates.
We have $1,000, if you deposit interest with a term of 1 year, the interest rate can be up to 8%. Thus, if after a year of depositing, we will get interest:
Interest = Deposit * 8%
= $1,000 * 8% = $80.
If you sign up for a 6-month term deposit package, we have the interest:
Interest amount = Deposit * 8% / 360 * 180
= 1,000 * 8% / 360 * 180 = $40
Which bank has the most competitive savings interest rates?
Currently, the interest rates offered by banks are not even and volatile due to the instability of the economy under the impact of the Covid-19 epidemic. So which bank has the most competitive interest rates? In the volatile and unpredictable economic situation due to many objective reasons: natural disasters, epidemics.
Digital banking, with its branchless online operation model, has brought into play its most competitive advantages. With its streamlined operation system, mostly based on artificial intelligence technology and blockchain, NEEBank was able to offer extremely attractive interest rates for depositors. With interest rates from 24% – 36% depending on the deposit package from N1 – N9 that customers choose, NEEBank gradually becomes an effective and safe investment channel in this digital banking era.