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How to Calculate the Interest of Time-demand Deposit
 

The time-demand deposit is of the characteristics of both time deposit and current deposit. For the deposit with a term of less than three months, the interest is calculated according to the interest rate of the current deposit. For the deposit with a period of more than three months, it is calculated as 60% of the interest of lump saving & withdrawing deposit with the same term. For the deposit with a period of over one year (including one year), the interest is calculated as 60% of the bank rate of lump saving & withdrawing deposit with one year term of the day when the deposit is withdrawn. The formula is: interest = capital* deposit period *bank rate *60%. Since the deposit period of time-demand deposit is not fixed,it is possible to appear extra days when withdrawing the deposit. In this case, it is suitable to use daily bank rate to calculate the interest.

E.g.: A depositor opened a time-demand deposit account of RMB1000 on Feb. 1,1998,and the withdrawing date is Jun 21,1998. How much interest should the depositor get?

First, make sure that the actual term of the deposit is 140 days. It should be calculated according to 60% of the bank rate for lump saving & withdrawing deposit with the deposit term of 3 months(the annual bank rate is 2.88%).
Interest = 1000yuan*140days*0.8% (daily bank rate)*60% = 6.72yuan


(2004-06-24)
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