What is the method of calculating the interest on term deposits?
We calculate the interest term deposits after the following formula:
Gross interest = (Nominal value x Number of actual days x Interest rate) / 360 x 100* |
But, to make everything as clear as possible, we also come with a calculation example, so that there is no room for ambiguity anymore. 😃
Thus, we consider (by way of example) a deposit:
➤⠀worth 5,000 lei;
➤⠀constituted for 3 months (90 days);
➤⠀with an interest rate of 2.5%.
For such a deposit, the interest calculation would be as follows:
(5.000 x 90 x 2.5) / (360 x 100) = 31.25 gross lei. That is 28.12 net lei (with a tax applied of 10%).
* If you want to find out more details about what each element in the formula means, know that I have explained everything within the question „How is interest on deposits calculated?”. 🤓
