Interest rate scale
The interest scale is used when calculating the interest for accounts with ongoing credits and debits and interest rate changes. Bank accounts such as current accounts, giro accounts, overnight money, savings accounts, etc., but also, for example, financial accounts and rental accounts are settled in this way. On some accounts, e.g. B. Current account credit with the bank, there is the possibility that the balance changes from debit to credit and vice versa, that is, that the account holder is debtor or creditor of the bank depending on the account balance . Usually different interest rates are used for debit and credit . In the case of a current account loan, for example, the interest on the loan is higher than on credit.
Calculation of interest
With the interest scale, the interest is always calculated up to a change in the account balance (deposit or withdrawal) or a change in the interest rate and accumulated (staggered) until the next capitalization . At the time of capitalization, the accumulated interest is then added to the capital (capitalized).
Day calculation : The calculation of the days depends on the agreement. Two methods are common: With the calendar method, the days are calculated exactly according to the calendar. With the commercial method, however, the months are generally calculated with 30 days and the years with 360 days. In general, the first day is not counted, but the last day is.
Capitalization: The point in time at which the accrued interest is added to the capital (capitalization) is also different. In the case of the savings book, the interest is usually added annually to the capital, in the case of overdrafts it is trimestral, i.e. every three months. Other capitalization dates are also possible.
Calculating the interest: To calculate the interest for a certain period of time, the number of days in relation to the anniversaries must be taken into account in the interest formula. Depending on the calculation method, the anniversaries are 360 or 365 or 366 for a leap year.
- ,
where stands for interest, for capital, for the rate of interest and for the calendar number of days per year.
Example:
Period: May 2, 2007 to June 20, 2007 Interest rate: 5%, that is ,
Capital: 1000
Daily calculation: according to the calendar
Days per year: by calendar
Example of an interest rate scale
To settle the interest of an account with ongoing deposits and withdrawals, the movements are recorded according to the following scheme:
Movements | balance | ||||
---|---|---|---|---|---|
date | description | Should | To have | Should | To have |
01/01/2007 | transfer | 2000 | 2000 | ||
01/20/2007 | Deposit | 150 | 2150 | ||
01/25/2007 | Withdrawal | 2700 | 550 | ||
01/28/2007 | Deposit | 450 | 100 | ||
03/31/2007 | graduation |
Note: The terms debit and credit are usually chosen from the point of view of the bank, so that debit means a credit or minus from the perspective of the account holder and credit means a credit or plus. If the account is private or business, the terms are reversed, which is correct from an accounting point of view.
The table is supplemented by the columns days and interest figures for billing purposes . It is also important to note that a higher interest rate is usually charged for borrowing money (credit) than is paid for making money (debit) available. The banks cite the default risk and administrative costs as reasons.
The interest figures: To simplify the settlement, part of the above formula is extracted.
From the interest formula:
becomes the interest rate formula
extracted. At the end the interest numbers are added up and with the remaining part of the formula
multiplied. With that the interest is calculated.
While the manual staggering of the interest, as it was common before the days of calculators and computers, the workload through the interest figures was enormous, it no longer plays a role today.
Calculation: the borrowing rate is 2%, the credit rate is 5%
Movements | balance | Interest numbers | ||||||
---|---|---|---|---|---|---|---|---|
date | description | Should | To have | Should | To have | Days | Should | To have |
01/01/2007 | transfer | 2000 | 2000 | 19th | 380 | |||
01/20/2007 | Deposit | 150 | 2150 | 5 | 107 | |||
01/25/2007 | Withdrawal | 2700 | 550 | 3 | 16 | |||
01/28/2007 | Deposit | 450 | 100 | 62 | 62 | |||
03/31/2007 | graduation | Days | 78 | 487 |
The interest figures multiplied by gives:
So: As of March 31, 2007, credit interest of 6.24 will accrue. With quarterly account closing, this interest would be posted as a credit movement and added to the capital.
See also
literature
- W. Grundmann, B. Luderer: Collection of formulas for financial mathematics, actuarial mathematics, securities analysis. 2nd edition, BG Teubner Verlag, Wiesbaden 2003, ISBN 3-519-10290-0 .