Interest calculation: Calculation example for the nominal loan interest rate. Failed home the resistance think commencemen interest calculation loan repayment. Home loan interest calculation national economy so far, communities sealed entire handprints secrecy.
The capital accumulation on a savings book is referred to as savings
The custodian acts as the debtor, since the investor has made the paid money available.
All changes in interest rates for savings and savings are in turn announced on the price display. The interest rate and thus the interest income calculation for the savings deposit business on a savings book is based on the special commitments for savings transactions.
The interest on savings in savings accounts is calculated using the so-called progressive item method. This method of calculating interest is also referred to as a commercial method or trading method or also as a commercial method. The interest is always calculated for the current year and in advance. For the savings, it is assumed here that no further changes to the savings account are expected in the course of the year.
If, after the premature calculation of the credit interest, there are movement flows in the form of incoming and outgoing payments, the interest balance is corrected. A calendar month of 30 days is assumed for interest using the progressive item method or the trading method. Accordingly, the interest for a whole year is based on 360 days. In the interest on savings bank deposits, this is not calculated from the stocks but from sales.
The accrued interest is offset at the end of the current calendar year
The accrued interest on the balances, adjusted for the development during the year, is added to the assets already in the savings book.
The interest income accrued from a year in the following year is therefore again included in the progressive position method for one year in advance and is subject to the same interest rate. When the interest income to be credited goes away, a correction is made in the forecast for the following financial year.
At the same time, the interest premiums on equity end on the day before the redemption to investors. When crediting interest income to savings books and savings, we speak of the activation of interest income. The capitalized interest accrues in the year after the offset, since it is assigned and used as the basis for determining the corporate action.
The interest income is credited to almost all savings at the end of the year. If the interest income is paid out within two calendar months after being credited, no further period has to be observed here, regardless of the amount of income and the specified notice period.
A sale is then only possible on the basis of the agreements made in the building society savings contract, since the interest income is linked to the existing depot.