How is interest calculated on term deposits?
We calculate the interest on term deposits according to the following formula:
Gross interest = (Nominal value x Number of effective days x Interest rate) / 360 x 100* |
But to make it as clear as possible, we also provide an example of a calculation so that there is no room for any further confusion. 😃
Thus, consider (by way of example) a warehouse:
➤⠀to the value of 5,000 lei;
➤⠀constituted for 3 months (90 days);
➤⠀with an interest rate of 2.5%.
For such a deposit, the interest calculation would look like this:
(5,000 x 90 x 2.5) / (360 x 100) = 31.25 lei gross. That is 28.12 lei net (with 10% tax applied).
* If you want to find out more details about what each element in the formula means, know that I explained everything in the question "How is interest calculated on deposits?". 🤓