What does the settlement transaction of ABC mean?

If a customer deposits or borrows money from the Agricultural Bank, after a certain period of time, the Agricultural Bank will settle the interest payable to the depositor or collect interest from the borrower, which is the interest settlement transaction of the Agricultural Bank. For depositors, the Agricultural Bank will calculate the interest according to the depositor's deposit cycle, and then transfer the interest into the depositor's savings account. If it is a borrower, it shall pay interest to the Agricultural Bank according to the standard at maturity.

1. On February1day of the last month of each quarter, Agricultural Bank of China will transfer the interest of current deposit in this quarter to the user's account, and send a short message with the words "interest settlement transaction" to the user the next day. The short message of interest settlement transaction sent by ABC only shows the interest amount, not the account balance. The length of different periods, such as 1 month, 1 year, 3 years, etc. There will be different annual interest rates or daily interest rates, so the settlement methods of banks are different, and the amount of interest settlement generated is also different. The interest settlement transaction of Agricultural Bank of China is calculated according to customers' different deposit periods and current profits, and then transferred to savings customers' accounts in cash; If you are a lender, you also need to pay bank interest on the standard quasi-maturity interest.

2. Interest settlement transactions are also called carry-forward transactions and carry trades. It refers to the trading behavior of borrowing money from the low-interest market and then investing in assets with higher returns, such as currency, stocks or other asset markets, in order to earn interest margins and capital gains. Generally, at the end or opening of interest settlement transactions, this behavior will amplify the positive feedback, leading to financial turmoil, sharp fluctuations in cross-currency exchange rates or a sharp decline in the stock market during the same period.

3. The deposit interest rate of ABC is as follows:

(1) The deposit interest rate is 0.3%.

(2) Time deposit:

(3) lump sum deposit and withdrawal: the interest rates for three months, six months, one year, two years, three years and five years are 1.55%, 1.75%, 2.25%, 2.75% and 2.75% respectively.

(4) lump-sum deposit and withdrawal, lump-sum deposit and withdrawal and interest-bearing deposits: one-year deposit rate 1.35%, three-year deposit rate 1.55% and five-year deposit rate 1.55%.

(5) The deposit interest rate of time deposits and time deposits shall be calculated at 60% of the same grade interest rate of fixed lump-sum deposits within one year.