What does ABC mean by interest settlement?

Bank interest settlement refers to the bank's settlement of deposit and loan interest at the agreed interest rate according to your deposit and loan accumulation in the bank.

The demand deposits in the debit card of Agricultural Bank of China are settled quarterly by cumulative interest method, and the 20th of each quarter is the settlement date. After-tax interest calculated according to the deposit interest rate settlement date (interest tax has been suspended at present, and the interest tax rate is zero) is incorporated into the principal interest.

The Notice on Interest-bearing Settlement of RMB Deposits and Loans issued earlier by the People's Bank of China will be officially implemented on July 1 2005.

The new regulations change the current interest settlement method of personal demand deposits from annual settlement to quarterly settlement, allowing financial institutions to make their own interest and interest settlement rules for call deposits, agreement deposits, time deposits and time deposits, deposit and withdrawal, lump sum deposit and withdrawal, etc. under the principle of not exceeding the upper limit of the interest rate of deposits of the same grade in the same period of the People's Bank of China.

This means that when individual depositors and borrowers handle the same deposit or loan in different banks, the interest rate is different.