What does interest settlement transaction mean?

Many friends will see the words "interest settlement transaction" when checking the bank statement details, and some friends will receive text messages from the bank to complete the interest settlement transaction in RMB. Many friends don’t understand what “interest-bearing transaction” means. Let's take a look.

To put it simply, interest settlement is interest settlement. When a deposit user deposits money into a bank or a borrower applies for a loan from the bank, after a certain period of time, the bank will settle the interest to the deposit user or charge interest to the borrower. This method is an interest-bearing transaction.

Usually, when you receive an interest settlement text message from a bank, it means that the bank pays deposit interest to depositors. Many friends now store money in bank cards. Our wages are also paid through bank cards, and the money in bank cards earns interest. This is just because the money in bank cards is a demand deposit and the interest rate is relatively low.

If you have deposit funds in your bank card current account, then according to the requirements, the bank will settle the interest on the current deposit on the 20th of the last month of each quarter, and list it on the interest settlement date or its interest rate. The interest will be transferred to the principal on the 21st. And a text message with the words "Interest Settlement Transaction" will be sent to the depositor on the next day of settlement. SMS messages are sent uniformly by the bank. It only shows the current interest balance, not the account balance. In other words, banks usually transfer customers’ demand deposit interest for this quarter to customer accounts on March 21, June 21, September 21, and December 21.

Note that if the customer closes the account before the deadline, interest will be calculated based on the current interest rate published on the deadline until the day before the deadline. Different banks have different interest settlement methods, so the interest settlement amount will be different. If you do not receive the text message, you can also check the interest settlement amount of the interest settlement transaction through online banking or mobile banking statements. Usually each bank will indicate the interest settlement transaction in the remarks column.

That’s it for “What is the significance of interest-bearing transactions”. Hope this helps!

Combo Financial Corporation releases this information to spread more information. The content of this article is for reference only and does not constitute any decision-making advice for you. Related Q&A: What does it mean to complete the interest settlement transaction in RMB?

The interest settlement transaction in RMB refers to the actual settlement of bank interest. Interest settlement includes annual interest settlement, quarterly interest settlement, monthly interest settlement, etc. Whether it is a deposit or a loan, there will be an interest settlement date. On the interest settlement date, the interest for the specified period of time is settled and then directly deposited into the user's account in the form of RMB. On the specified date, the lender settles its own loan interest as settlement interest, and the bank settles the deposit interest as settlement interest for deposit users. Generally, as long as users have a current balance in their bank card accounts, they will receive corresponding interest settlements on a regular basis. The interest settlement date for bank current interest is uniformly stipulated by the state, that is, the 20th of each quarter is the interest settlement day, and the corresponding interest is officially paid on the 21st. Interest. Extended information: 1. Bank interest settlement means that the bank settles the deposit and loan interest at an agreed interest rate based on the amount of your deposit and loan in the bank. The "Notice of the People's Bank of China on the Interest Settlement of RMB Deposits and Loans" will be officially implemented on July 1, 2005. It stipulates that the current interest settlement method for personal demand deposits will be changed from annual settlement to quarterly settlement, allowing financial institutions to formulate notice deposits, agreement deposits, time deposits, and lump sum deposits on their own without exceeding the upper limit of deposit interest rates of the same grade of the People's Bank of China for the same period. Interest settlement rules for deposit withdrawals. This means that individual depositors and loan customers who apply for the same deposit or loan at different banks will receive different interest rates. 2. The completion of the account interest settlement transaction means that the bank will settle the deposit and loan interest at the agreed interest rate based on the amount of your deposit and loan in the bank. Generally, deposit and loan interest is calculated quarterly based on monthly interest rates, that is, the 20th of the last month of each quarter is the interest settlement date (the 20th of March, June, September, and December). The interest accrual date is from the 21st to the 20th of the previous quarter. 3. When the depositor deposits the deposit in the bank or the borrower borrows from the bank for a certain period of time, the bank gives interest to the depositor or collects interest from the borrower. This is an interest settlement transaction, so the popular interest settlement is interest settlement. Or deposits and loans of different terms, such as one month, one year, three years, etc. , there will be different annual interest rates or daily interest rates, so different banks have different settlement methods-the amount of interest settled is also different.