Monthly capitalization
If capitalization is carried out by the bank once a month, then the total amount together with the accrued income is calculated according to the following formula:
Deposit body x ((1 + Annual interest rate / 100 / 12) raised to the power equal to the deposit term in months).
Please note that in this and other formulas we calculate "classic" compound interest on deposits. In a situation where we are talking about a "floating" rate, the formula will be different - it is necessary to know the exact values according to the terms of the agreement and take them as a basis.
A quarter is equal to three months. If capitalization is carried out by the bank with this frequency, then to calculate the total amount of the deposit and accrued income, it is necessary to use the following formula:
Deposit body x ((1 + Annual interest rate / 100 / 4) raised to the spain mobile database power equal to the number of quarters in the deposit term).
The term of the quarters is calculated accordingly as the total number of months of the deposit divided by three.
How to calculate interest on a deposit: detailed examples
Let's look at examples of calculations using the formulas given above.
Simple interest
Let's say you made a deposit of 100 thousand rubles at 10% per annum for 1 month.
How to calculate the interest on a deposit for a month using the formula above:
(100 thousand rubles x 10 x (30 / 365)) / 100 = 0.821 thousand rubles.
Accordingly, the depositor will receive a total of 100,821 rubles.
Compound interest with daily compounding
Let's say you put the same 100 thousand rubles for 1 month at 15% per annum with daily capitalization.
Then the calculation of the total amount will be as follows:
100 thousand rubles x ((1 + 15 / 100 / 365) raised to the power of 30) = 101,240 rubles. Accordingly, the depositor's income will be approximately equal to 1,240 rubles.
Compound interest with monthly compounding
Let's say you put 100 thousand rubles for 6 months at 12% per annum with monthly capitalization.