how do banks compute interest???

[Just]

let's say nag time deposit ka sa bank
interest rate is 2%

so deposited 100K for 30days, after 30days nag interest ng 150pesos
so 100,150 na pera mo the next 30 days, i was expecting na 150pesos or more ang interest pero hindi eh, ang naging interest nya is 133.54 lang

pano ba nila ni-co compute yun? gulat lang ako

initial dep - 100K
first 30days interest *2% - 150
next 30days interest *2% - 133.54 WHY?

anyone can explain this?

[vinj]

Its compounded at 2% per annum. You also have to deduct taxes.

[Just]

yup, bawas na tax dyan sa interest. ang pinagtataka ko bakit lumiit yung interest?

- initial dep is 100k
- after 30days, interest is 150 so total is 100,150 na total deposit
- after another 30days interest is 133.54 na lang

bakit? dito ako nagtataka - lumiit, i was expecting na more than 150 kasi lumaki na deposit. weird di ba.

[CVT]

I don't know how they paid you P150 in interest the first month.

But it looks like your interest the second month comprehends the 20% final tax.

Maybe our Banker Tsikoteers could enlighten us here.

11.9K:apple:

[uls]

ask your bank kung nagbaba sila ng interest rates

lending rates have been falling so banks will lower the interest paid on deposits

[mazingerZ]

let's say nag time deposit ka sa bank
interest rate is 2%

so deposited 100K for 30days, after 30days nag interest ng 150pesos
so 100,150 na pera mo the next 30 days, i was expecting na 150pesos or more ang interest pero hindi eh, ang naging interest nya is 133.54 lang

pano ba nila ni-co compute yun? gulat lang ako

initial dep - 100K
first 30days interest *2% - 150
next 30days interest *2% - 133.54 WHY?

anyone can explain this?

In your case, I believe floating or prevailing market rate ang pinili mo na interest for your time deposit.

In your first mointh, you were given an interest rate of 2.25% (computed as follows: P150/(1-20% w/tax) = P187.50 gross interest earned in a month. P187.50 x 360 days in a year divided by 30 day term = P2,250. P2,250 / P100,000 principal gives you a per annum interest rate of 2.25% for that particular month).

Now its you second month, how much was your interest rate? Definitely lower. Lets compute:

P133.54/(1-20% w/tax) = P166.925 gross interest earned
P166.925 x 360 days divided by 30 days = P2,003.10
P2,003.10/P100,150 = gives you 2.00 %(rounded off figure)


Hence,

your interest rate for month 1 was 2.25% and on month 2 was only 2.00%. All on a per annum basis.

Better ask your bank if pwede na ipafix mo na lang interest rate mo.

[Just]

oo nga, i asked the bank
from 2.25 bumaba to 2.00 - sayang din 0.25 hehe

thanks

[CVT]

In your case, I believe floating or prevailing market rate ang pinili mo na interest for your time deposit.

In your first mointh, you were given an interest rate of 2.25% (computed as follows: P150/(1-20% w/tax) = P187.50 gross interest earned in a month. P187.50 x 360 days in a year divided by 30 day term = P2,250. P2,250 / P100,000 principal gives you a per annum interest rate of 2.25% for that particular month).

Now its you second month, how much was your interest rate? Definitely lower. Lets compute:

P133.54/(1-20% w/tax) = P166.925 gross interest earned
P166.925 x 360 days divided by 30 days = P2,003.10
P2,003.10/P100,150 = gives you 2.00 %(rounded off figure)


Hence,

your interest rate for month 1 was 2.25% and on month 2 was only 2.00%. All on a per annum basis.

Better ask your bank if pwede na ipafix mo na lang interest rate mo.

In which case, bro., when the bank quoted you say 2% interest rate per annum,- is this going to be the minimum guaranteed interest rate?

Or, will there be a chance that since this is "floating", the actual effective interest rate during the monthly compounding period may be lower?

11.9K:apple:

[XTO]

*Just: Normally pag 30, 60, 90, days term pag renew / roll over mo mas mababa na rate. Gusto mo sa 365 terms mo ipasok para fixed siya for a year kung ilang percent.