What does interest settlement transaction mean?

What does interest settlement transaction mean?

Interest settlement transactions specifically refer to settlement interest transactions handled by banks for depositors.

1. After the deposit time expires, the bank will settle the deposit and loan interest at the agreed interest rate based on the depositor's deposit and loan accumulation in the bank. Simply put, an interest settlement transaction refers to a method in which a depositor deposits a deposit in a bank or a borrower borrows money from a bank, and the bank pays interest to the depositor or charges interest to the borrower within a certain period of time.

2. If you have a deposit in your personal current account, on the 21st of the last month of each quarter (March 21, June 21, September 21, December 21), our bank will The account current deposit interest will be transferred to your account during this quarter, and a text message containing the words "Interest Settlement Transaction" will be sent to you on the next day. This text message is sent uniformly by our bank and only displays the interest amount and does not display the account balance. .

3. Interest is settled quarterly for demand deposits in debit card accounts. The 20th of the last month of each quarter is the interest settlement date. Interest is calculated based on the interest rate listed on the interest settlement date or its interest rate. The interest will be transferred to the principal on the 21st. gold. If the account is closed before the interest settlement date, interest will be calculated based on the current interest rate announced on the account closing date until the day before the account is closed.

4. In fact, interest settlement transaction is the act of settling interest on the funds in the customer account. For customers who save. Because it is equivalent to the borrower receiving interest income. If you are a loan customer, you will have to pay interest to the bank. So it is naturally beneficial for customers to save money. And the loan is not particularly beneficial to the customer.

5. Calculation method for interest settlement transactions:

Different cycle lengths, such as 1 month, 1 year, 3 years, etc., will have different annual interest rates or daily interest rates, so The settlement methods of each bank are different, and the interest settlement amounts generated are also different. The Agricultural Bank of China's interest settlement transaction is calculated based on the customer's different deposit cycles and current profits, and then transferred to the savings customer's account in cash; if you are a lender, you also need to pay the standard quasi-interest due to the bank. Interest.

1. Interest rate spread calculation

Overnight spread plays a key role. For example: high-interest currency interest rates: US dollar (5.25), Australian dollar (6.25), New Zealand dollar (7.50), low-interest currency: Japanese yen (0.5), assuming that the US dollar interest is 5.25, the Japanese yen interest is 0.5, and a transaction of 100,000 US dollars is made , 100,000 U.S. dollars equals 12.15 million yen, and the exchange rate is 121.50.

The interest income of US dollars is 100000 =577125 yuan.577125/121.50=4750 U.S. dollars plus the currency forward non-deliverable quotation within a certain fixed range, risk-free returns can be obtained, so holding the high-interest currency U.S. dollar for one year makes a profit of 577125 yen (4750 U.S. dollars) ). What does interest settlement transaction mean?

The so-called interest settlement is actually the bank’s settlement of interest for you, which is referred to as interest settlement! So interest settlement transactions refer to which transaction banks will calculate interest for you in the current deposit transaction flow!

Our bank cards have many transactions every day, including transfer transactions, shopping transactions, investment transactions, payment transactions, etc. But for banks, you can get interest from the bank when you deposit money, but not all transactions have interest! For example, today you have a deposit of 50,000 yuan in your bank card account, a transfer of 20,000 yuan, and a balance of 30,000 yuan in the card. Then the bank will not pay you interest on the 20,000 yuan transferred, but will only pay you interest on the 30,000 yuan in demand! ：

So what kind of transaction flow will accrue interest?

Under normal circumstances, interest will be settled only on overnight transactions. The so-called overnight stay means that the money must stay in the card overnight. For example, if I receive 50,000 yuan today, and I don’t move the money today, I just put it in my bank card. Then the bank will calculate interest for me on the 50,000 yuan the next day. But if I am in a hurry to spend money today, I transfer the 50,000 yuan away again.

So if there is no money in the card today, then the bank will naturally not calculate interest for me.

So the overnight transaction will be settled with interest!

When many loan companies approve a limit for a customer, they will refer to the customer's bank card interest balance to approve the limit. The same is true for a house. What the bank asks for from the salary flow is also the interest. If there is no punch-in salary, the interest on personal turnover will be relatively large, and the mortgage loan will be easily approved.

So if you clock in your salary and make a running transaction overnight, it will be considered an interest settlement transaction.

Finally, let’s talk about some invalid turnover transactions:

Transaction turnover of fast in and fast out

Income on the same day, withdrawal on the same day

Transfer transaction turnover

So to sum up, only the overnight turnover will have interest settlement, and you will be considered an interest settlement transaction!

There are various algorithms on the market, and new algorithms will be produced in the future. Trend trading has uncertainty, while algorithmic trading has a considerable degree of certainty, and the certainty is higher than carry trading.

If trend trading is like judging ants, then algorithmic trading is like a straightened rubber band. No matter how the rubber band is pulled up and down, it may eventually become a straight line. This is essentially different from trend trading.

Algorithmic trading is widely used and continuously pursued by institutions, so its disadvantage is that it is not highly profitable and requires market differences to provide opportunities. Small capital can use leverage to change risks and obtain certain high returns.

Trend traders can easily get tired of the market, while algorithmic trading completely uses bugs to obtain certainty, so it generally does not make people tired. Trend trading tends to make people age. Trend traders who are tired of using their brains can use algorithmic trading to easily survive in the market. What does interest-bearing transaction mean?

Interest-bearing transactions are also called carryover transactions and carry transactions. They refer to borrowing funds from the low-interest market and then investing them in assets with higher returns, such as currencies, stocks or other assets. The market uses this behavior to earn interest differentials and capital gains.

Generally, when interest settlement transactions end or positions are unwound, this behavior will intensify positive feedback and lead to financial turmoil. During the same period, the cross currency price ratio will fluctuate violently or the stock market will fall sharply.

What does the interest settlement transaction in the bank mean?

Generally speaking, bank interest settlement transactions refer to the actual payment of interest. Commercial banks do not pay or collect interest on a loan or deposit every day, but uniformly pay it to the lender on a specific date. Or depositors settle or collect corresponding interest, and this is one of the bank's businesses.