The calculator will help you quickly “estimate” how much you can earn by placing a deposit in a bank.

Convenient calculator?

YesNo

How to calculate income on a deposit (deposit)

Enter the following information into the form:

• The amount of deposit that you are willing to make to the bank and the currency in which you place the funds;
• Placement period and date of contribution;
• Next, select the type of interest rate and the amount of interest that the bank charges on the deposit amount;
• Specify how often interest is accrued on the deposit. Most often this happens monthly, but there are other offers from banks. The frequency of accrual is necessarily indicated in the terms of the deposit;
• Check the “Capitalization of Interest” checkbox if the interest on the deposit that is accrued by the bank during the deposit placement period is added to the deposit amount. If interest is transferred to a separate account or card, then there is no “Capitalization” of the deposit and the amount remains unchanged;
• In the “Tax” field, indicate whether you are a resident or non-resident of the Russian Federation or select “None”, which applies to 99% of calculations;
• Provide information if you periodically intend to replenish or withdraw some money from the deposit, as well as the amount of the minimum balance in case of withdrawal of funds from the deposit;

Resident of the Russian Federation- this is someone who has lived in Russia for at least 183 days over the past year, the rest are non-residents. Russian citizenship has nothing to do with the concept of resident/non-resident.

What the calculator will show

As a result, the calculator will calculate and display the data:

• The total amount of accrued funds on the deposit is the income from the placement;
• Size "Effective" credit rate" When “Capitalization” of the deposit, the amount will be greater than the percentage you entered for placing the deposit, because funds that are credited to the deposit are taken into account;
• The amount on deposit at the end of the term. Actually this is the amount of the deposit plus the amount of interest;
• Schedule for calculating interest and increasing the deposit amount for the entire period of placement;
• If interest rate deposit is such that you need to pay income tax, the calculator will automatically calculate the amount that will be withheld by the bank for taxes and show the Deposit Income minus tax payments(tax details below).

Tax on placement of bank deposits

According to the legislation of the Russian Federation, taxes on earnings on bank deposits must be paid in two cases:

• You placed a foreign currency (any currency except the Russian ruble) deposit with an interest rate of more than 9% per annum;
• The interest on deposits in Russian rubles on the date of opening the deposit is greater key rate Central Bank by 5 percent or more;

Deposit tax rate and tax amount calculation

• The rate for residents of the Russian Federation is 35%;
• For non-residents - 30%;

The tax on deposits in rubles is not calculated on the entire amount of income on the deposit, but only on the difference between income with interest at the Central Bank rate + 5% and the actual rate offered by the bank.

The tax on deposits in foreign currency, similar to ruble deposits, is calculated not on the entire income on the deposit, but only on the difference between the “allowed” rate of 9% and the actual rate offered by the bank.

An example of calculating tax on a bank deposit

Just for general development, the calculator takes this into account!

As of July 1, 2018, the Central Bank Refinancing rate is 7.25%, therefore the tax will need to be paid on a ruble deposit at a rate of 7.25%+5%=12.25% and higher.

Initial data: We open a deposit of 1,000,000 rubles at 14% per annum for a period of 12 months;

• We calculate interest for 12 months: 1,000,000 * 0.14 * 12/12 = 140,000 ₽ - this is total income by deposit;
• We calculate the interest on the allowed rate (Central Bank + 5% = 12.25%): 1,000,000 * 0.1225 * 12/12 = 122,500 ₽ - this is tax-free income;
• Next, we calculate the amount on which tax must be paid: 140,000 - 122,500 = 17,500 rubles. This is it tax base, with which we pay;
• As a result, we calculate the amount of tax (for residents of the Russian Federation 35%): 17,500 * 0.35 = 6,125 rubles. This amount must be given to the state.

I will note one thing: I have never, in any bank, seen rates so large that I had to even think about paying tax.

You can and should ask your questions in the comments.

Good afternoon, dear friends! I think few people will be surprised by the fact that the most common and popular way to save and increase money today is bank deposits. This is not surprising, because this investment option accessible to everyone who has even small savings. In addition, in our country it provides for the return of interest and deposit amounts to depositors in the event of bank bankruptcy, provided that the amount in the account does not exceed 1,400,000 rubles. Unfortunately, many investors naively believe that the main indicator of the profitability of their deposit is the interest rate charged on the invested amount.

In reality this is not entirely true. To make an accurate forecast of the expected return on an investment, you need to know how to calculate interest on a deposit, taking into account the features and properties of banking instruments. This is exactly what we will talk about today. Prepare calculators, pens and notepads, we begin our search for the best banking offer for our savings!

What is the interest rate and what does it depend on?

The interest rate on deposits is the most important indicator that tells us how profitable or unprofitable it is to keep money in a particular bank account.

Quite often in advertising brochures issued by banks, you can see attractive figures promising very, very high dividends on deposits. This is not surprising, because the main task of marketing is to capture, attract attention and arouse interest. Regardless of what you see in advertising, always double check the information that the bank provides you.

Don’t be lazy to check the accuracy of the data by calculating the amount of interest and checking it with that stated in the advertising brochure. Before you take your money to the bank, try to collect as much information as possible and independently calculate the amount that will be accrued on your deposit as dividends in the bank of your choice for a specific contribution.

Interest calculators

If you trust the calculation of percentages to ready-made calculators, believing that they will do all the necessary work for you and show the real result, then you are mistaken. The whole point is that:

Criteria for evaluation

In order to choose a profitable one and at the same time, you need to evaluate row the most important indicators , and not just the interest rate and profitability of the deposit. That is why it makes sense to understand the process of comparing the predicted values ​​that we obtain as a result of calculations.

To begin with, let's determine that the deposit rate is a remuneration rate, expressed as a percentage, which you have the right to count on when placing your savings in the selected bank in the selected deposit. As a rule, banks calculate the rate in the form annual interest. I want to draw your attention to this point. After all, we don’t always put money in deposit accounts for the whole year. It is quite acceptable to open a deposit for 1, 3 or 6 months, or for a period of more than one year. In this case, we are interested in the size of the monthly remuneration for open deposit. To find out the profitability of a deposit opened for several months, we need to adjust the rate stated in the contract to the actual term of our deposit.

This is not at all difficult to do, and your school algebra course, in which you studied percentages, will be quite enough for you. We all know that 1 kopeck is one percent of the ruble. In turn, a ruble is one percent of one hundred rubles. In other words, one percent is the hundredth part of any number.

For example: 1% of an amount of 10,000 rubles is 100 rubles. It seems like nothing complicated, right? But how to calculate these amounts for time periods if the percentage is indicated for the year?

Annual percentage

It’s worth entering right away new term – annual interest , which we will use to refer to the amount of remuneration that the depositor will receive from the bank for keeping his money as a deposit for one year. If we translate this phrase into a numerical value, it turns out that by opening a deposit in the amount of 10,000 rubles for a period of one year at 15% per annum, after the billing period we will no longer receive 10,000 rubles, but 11 500 .

But what to do if you have a bank non-standard condition for storing funds, which implies opening a deposit not for six months or a year, but, for example, for 370 or 395 days? Do you agree, this is a rather unusual calendar calculation? Most likely, such an offer is also accompanied by fairly high interest rates, which, when recalculated, will practically not differ from all other offers on the market.

Order a card with interest on your balance

Calculation

To double-check the veracity of my words, you need to find out how much income you will receive for one day of keeping money on deposit. Let's assume that our deposit is open for 370 days, and the reward amount from the previous example was 1,500 rubles. Based on these data, we find that one day of work of your contribution will bring you

1500: 365 = 4 rubles and 11 kopecks

Now we believe that we will get if we follow the lead of advertising

1500: 370 = 4 rubles and 5 kopecks

Thus, it turns out that 6 kopecks is just a marketing trick. Based on this, we can draw a completely logical conclusion: when opening a deposit, you need to pay attention not only to the promised dividends, but also on conditions.

What determines the interest rate?

To understand what the interest rate depends on, it should be noted that different types deposits have different offers, which are formed as follows.

Dependence on the key rate

Rates based on legislative support are regulated by the Central Bank Russian Federation. The size of these bets depends on what key rate offers the Central Bank to other banks, issuing loans to the latter. For example, from January 1, 2016, the refinancing rate corresponds to the key rate of the Central Bank of the Russian Federation. As of September 16, 2016, it is 10% per annum. You can see current rates on the official website of the Central Bank of the Russian Federation . You can inquire about the history of changes in the refinancing rate on this page .

Bid data Central Bank are a kind of indicator of the state of the economy and tell us about the level of inflation in the country. The bank's offer cannot exceed the rates of the Central Bank of Russia by 5 points. That is, if the Central Bank issues loans at 10%, then the bank cannot offer individuals more than 15%. If you do receive an offer with a higher rate, then get ready to pay the state income tax in size 35% of the amount exceeding this yield.

State money supply

I think every financially educated person understands that the disadvantage money supply causes a shortage of money and leads to the fact that loans begin to rise in price and deposit rates to rise. If, for example, you know how to save money and open a bank account, while your neighbor Anatoly lives on credit, then the bank will offer you more high stakes for the deposit, and for Anatoly - for the loan.

Follow the news carefully and learn to analyze them correctly. If you hear that Central Bank plans to print money in order to issue more of it to banks, then we should all prepare for an increase in inflation and a decrease deposit rates. If the state carries out large-scale borrowing of funds on its domestic market, this means that the country is experiencing sterilization of the money supply or, in other words, a reduction in the money supply. As a result of such processes, we see an increase in deposit rates.

Macro- and microeconomic factors

When the economy is actively developing, enterprises actively take out loans for their development, expansion of production and improvement of material and technical equipment. Banks need to attract money from the population, and therefore offer their investors higher interest rates on deposits. If the economy is in recession, then the demand for money falls, and bank interest on deposits are decreasing.

As you can see, interest rates depend on a whole range of components: starting from the banks themselves and ending with the state of the state’s economy as a whole.

Types of interest rates on bank deposits

When opening a deposit in a bank, you have the opportunity to decide what you want to do with accrued dividends - withdraw them to a card or add them to the amount of the initial deposit, thereby capitalizing it. Depending on which option you choose, this will be the formula for calculating interest. If you remember school mathematics well, then you know that percentages can be simple and they can be complex.

How is simple interest calculated?

So, simple bet for deposits is calculated as follows:

Amount of accrued interest= (Initial deposit amount*annual % rate*% accrual period in days / number of days in a year) / 100

For ease of understanding, let's look at this example: you open a deposit in a bank in the amount of 50,000 rubles for 1 year with simple interest accrual. The % rate is 11.5%. Using the above formula, it turns out that a year after your deposit is closed, you will earn:

(50 000 * 11,5 * 365/365) / 100 = 5750 rubles

In this case, interest will not be added to the body of the deposit, but every month (once every six months or once a year) will be withdrawn to your other account. In this case, it is very profitable to use the monthly withdrawal of interest. If you do not have time to spend the funds earned on the deposit, % will be credited to your card.

How is compound interest calculated?

Calculation of compound interest on deposits is several more difficult and interesting. However, before we start studying it, I suggest you find out in what cases we are dealing with a complex bet.

When opening a deposit in a bank, you have the right to decide whether to add the interest received to it or withdraw it to another account. If you choose the first option, your deposit will be credited compound interest. That is, in each subsequent period, interest is accrued for a larger amount than in the previous one, thereby accelerating deposit growth.

This addition of deposit payments to the initial deposit amount is very important, since the amount of savings is growing faster and faster. Moreover, the growth model is not an arithmetic progression, but exponent.

For comparison, let's take the calculation of simple and compound interest on the same deposit. We will conditionally deposit it into the account 100,000 rubles at 10% per annum. At the end of the billing period at the simple rate we will receive:

100 000 * 10 / 100 = 10,000 rubles;

Compound Interest Formula is presented below:

The variables mean the following,

S= total amount that the investor will receive
s= initial investment
P= % of the bank for 1 period. In our case, we deposit money for 1 year, but the interest is calculated every month and added to the principal amount of the deposit, therefore, our percentage for the period is: annual interest/number of interest periods= 10%/12 months= 0,833% (fixed return for 1 month)
d= period, the number of days for which you deposit money in the bank
D= number of calendar days in a year
n= number of months, years (periods) for which interest is calculated.

Let's calculate our example:

100 000 * (1+0,833*365 / 100*365)^12 = 10,466.92 rubles

Thus, the same deposit placed in a bank under different conditions can bring in as much as 10,000 rubles net profit, and 10,466 rubles.

In the latter case, we are dealing with the capitalization of the deposit - adding accrued% to the body of the deposit. As a result, we get an increase in the initial investment amount and interest accrual on the increased amount.

In order not to manually calculate the return on your deposit, I advise you to use a compound interest calculator. In it you can indicate the amounts of regular additions for a certain period. You can find such a calculator on my website on the right side, in the sidebar, in the “ tab Profitability calculator».

How is the effective rate calculated?

Well, now let's look at the effective interest rate on a deposit in order to get a complete picture of banking offers in our heads.

The effective rate is usually called the rate that gives equal income on an identical deposit without capitalization of interest. That is, let’s assume that you open an account in the amount of 50,000 for a year at 8% per annum with the condition of capitalization. We carry out the calculation using the formula we already know and get:

P = 8%/12= 0,6666% for the period

50 000 * (1+0,6666*365/100*365) 12 = 54,150 rubles.

Now let's look at the offer at the neighboring bank. Here you can open the same deposit, but without capitalization, but at 8.3% per annum. Such an offer will allow you to receive exactly the same income as in the case of capitalization.

(50 000 * 8,3 * 365/365) / 100 = 4,150 rubles.

54 150 / 50 000 = 1,083 or 8,3% .

This 8.3% is our effective annual deposit rate with monthly capitalization. That is, if a deposit without adding interest to the body of the deposit has a rate exceeding 8.3%, then such an investment will be more profitable for us than a deposit with 8% per annum and monthly capitalization. Do not forget that in the case of a deposit with 8.3% per annum, monthly interest can be transferred to a debit card with credit to the balance, in this case this deposit will be more profitable.

Insurance

All opened deposits are insured for the total amount 1,400,000 rubles in one bank. Here everything is taken into account along with the interest accrued on your amount. That is, if your deposit is more than 1,400,000 rubles, then it makes sense to split it into several smaller accounts. All received limits should be invested in different banks. It's even better if you calculate the total amount with future interest and make sure it's less than your limit. In this case, revoking the bank’s license will allow you to return both your down payment and the interest accrued on it. For example, if the bank where you opened a deposit account in the amount of 2,000,000 rubles goes bankrupt, then the deposit insurance agency will return only 1,400,000 million to you, and the remaining 600,000 will be lost forever.

Interest

• If the interest on the deposit exceeds the refinancing rate of the Central Bank of the Russian Federation by 5% or more, the income of capital investors is taxed at 35% on the amount exceeding this limit;
• At the same interest rate capitalized deposits provide greater returns. This is worth considering when choosing a deposit.

Agreement

When making a deposit, keep the agreement with the bank, receipts for transferring money to the account, keep all statements of interest accrued to your account. This will allow you to protect your money from notebook deposits (not officially registered bank accounts). IN large banks It's very rare to stumble upon a bank deposit passing by the cash register. But better protect your money and keep the agreement and official documents about transferring money to the bank.

Commissions

If the bank offers an incentive in the form of commission compensation when transferring money from an account in another bank to a deposit account, be sure to take advantage of it. Instead of withdrawing cash and taking it to the cash desk of the organization where you want to open a savings account, use a wire transfer.

Short-term deposits

If you need to deposit money for a period of 1-3-6 months, the most profitable option for you would be to transfer funds to a debit card with interest charged on the balance. This is due to the fact that for short investment periods, interest is accrued on average in the amount of 5-8% on the amount down payment, while on debit cards the accrual starts from 6% per annum on the balance.

I'll bring you your example: I use it, it charges the balance of money on the card in the amount 6% per annum provided that there is an amount of up to 300,000 rubles on the account. If the amount is larger, the accrual will be 4% per annum, this option does not suit us. That is, if you have more than 300,000 rubles on your card, just split this amount between 2-4 savings cards and easily accumulate interest.

Apply for a Tinkoff debit card

The advantage of this option is that You can withdraw money any time you want. That is, there is no recalculation of interest, as is the case with bank deposits. More details from debit cards You can familiarize yourself with the calculation of interest on the balance in my separate article.

Conclusions

By and large, the choice of deposit directly depends on what tasks you set for yourself, what conditions interest you, and what goals are you pursuing?. If you decide to open a bank account, first analyze your specific situation, and do not go into the abstract. Remember that the choice should be made not only on the basis of the promised profitability, but also on bank reliability and deposit conditions.

Never trust the fate of your savings to bank employees. It is foolish to ask advice from people who are interested in selling a product recommended by bank policy, and not what will be most profitable for you. Any normal employee will try to push you something for which he will be rewarded with a coin, and not something that interests you.

I sincerely hope that this article will help you feel freer when choosing tariff plan for your deposit and will not allow you to turn out to be a “black sheep” in communication with a bank employee. Good luck with your investments, favorable conditions and see you soon! Don't forget to subscribe to blog updates to receive the latest articles in your email.

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Bank deposits are the most common way to save and increase own funds. Most of the population keeps theirs in banks. And this is not surprising, since what makes deposits is also the most in a safe way storage of capital.

For many people, the interest rate on a deposit is an indicator of the profitability of the deposit. Is this true? No, you still need to take into account the properties bank deposits, such as the presence of interest capitalization, its frequency, the possibility of replenishment, as well as withdrawal of part of the deposit. However, in order to predict the expected return on a deposit, you need to be able to calculate these same percentages.

My experience working in a bank showed that people do not know how to do this. The quality of service in banks often leaves much to be desired. Many managers themselves do not know how to calculate interest on deposits. Therefore, it is important to be able to independently calculate the profitability of a deposit, taking into account both the interest rate and the properties of the deposit.

We will take an example for calculation from the article

There we considered the amount of 100,000 rubles placed for a period of 12 months. We had three different ones that differed (accrual of interest for a certain period on the initially invested amount):

1. Capitalization of interest at the end of the term

1. To calculate simple interest
2. To calculate compound interest.

Simple interest formula

Simple interest– this is when interest on the deposit is accrued at the end of the term. For example, a deposit is opened for a year, with interest paid at the end of the deposit term, which means this formula will be applied.

Calculation of simple interest.
S = (P x I x t / K) / 100
I– annual interest rate
t– number of days of accrual of interest on the attracted deposit
K
P– the initial amount attracted to the deposit cash
S– the amount of accrued interest.

Compound interest formula

Compound interest– this is when, during the deposit period, interest is capitalized within the deposit period (monthly, quarterly). For example, a deposit is open for a year. If interest capitalization occurs during the year, then the formula for calculating compound interest will be used.

Calculation of compound interest.
S = (P x I x j / K) / 100
I– annual interest rate
j– the number of calendar days in the period following which the bank capitalizes accrued interest
TO– number of days in a calendar year (365 or 366)
P– The initial amount of funds attracted to the deposit, as well as the subsequent amount taking into account the capitalization of interest
S– the amount of funds due for return equal to the original amount of funds raised plus accrued capitalized interest.

Example one – Interest capitalization monthly

Interest capitalization monthly

In this case, we apply the compound interest formula, since interest capitalization occurs monthly.

Jan: S=(100,000 x 14 x 31 / 365) / 100
S=1189.04 rub.

Next, we add the resulting interest in the amount of 1,189.04 rubles to our initial deposit in the amount of 100,000 rubles. We receive 101,189.04 rubles. This is what monthly capitalization looks like. Then we calculate February in the same way, not forgetting that February has 28 or 29 days.

Feb: S=(101 189.04 x 14 x 28 / 365) / 100
S=1086.74 rub.(the amount turned out to be less, since there were fewer days in February than in the previous month). We add the received interest 1086.74 to 101189.04 = 102275.78 rubles. And so on, we add the interest received to the previous amount and calculate the new month taking into account the initial deposit and all accumulated interest.

Example two - Interest capitalization quarterly

Interest capitalization quarterly

Interest capitalization is quarterly. We apply the compound interest formula. We proceed by analogy with the first example. But I would like to draw your attention to a fairly common error in calculations. Many people, when calculating quarterly capitalization, substitute j into the formula - the wrong number of days. It is necessary to set not 30 or 31 days, according to the number of days in a month, but the number of days for the total calendar period. To do this, we summarize the number of days for 3 months of each quarter.

• In the first quarter it will be 90 or 91 days, depending on how many days there are in February, for example: January (31 days) + February (28 days) + March (31 days) = 90 days.
• In the second quarter it will be 91 days: April (30 days) + May (31 days) + June (30 days) = 91 days.
• In the third quarter it will be 92 days: July (31 days) + August (31 days) + September (30 days) = 92 days.
• In the fourth quarter it will be 92 days: October (31 days) + November (30 days) + December (31 days) = 92 days.

1st quarter: S=(100,000 x 14 x 90 / 365) / 100
S=3452.05 rub. Add this to the original amount. We get 103,452.05 rubles. Further by analogy with the first example.

Example three - Capitalization of interest at the end of the term

Interest capitalization annually

Capitalization of interest at the end of the term. In this case, the simple interest formula is used.

S=(100,000 x 14 x 365/365) / 100
S=14000 rub.

That, in fact, is all the wisdom. Now you know what is the case with bank deposit It’s more profitable to choose the one with monthly capitalization. However, this is not the only criterion by which a deposit should be selected. Other criteria will be discussed in more detail in the articles below:

P.S. For dessert, to take a break from numbers and calculations, I have prepared a video about extreme sports for you. What I liked most were the views from which the video was filmed. I recommend watching:

A banker is a merchant. He buys money interest on deposit at a low price and sells them loan interest at a higher. The resulting difference constitutes his income.

There are more people who want to borrow than those who want to deposit money at interest. Therefore, commercial banks can obtain loans from Central Bank of the Russian Federation Central Bank of the country. As of September 2016, under "key rate"
(aka “refinancing rate”) 11% per annum. It is logical to assume that commercial banks not very profitable to take contribution deposits with an interest rate above this value. An exception can be made only for VIP clients - owners of factories, newspapers, and ships.

For the rest high percentage on the deposit may be a marketing ploy, since it will be compensated through various commissions.

How to calculate the amount that the depositor will receive if interest is accrued at the end of the deposit period

Annual deposits

A person opened a deposit of 5,000 rubles at 9% per annum for 2 years:

for the year: 5000 rubles is 100% x rubles is 9% x=5000*9/100=450 rubles in two years: 450 rubles for 1 year x rubles for 2 years x=450*2/1=900 rubles 5900 rubles the investor will receive at the end of the term * What is 100? - “A percentage is a hundredth of a number.” Cm. .

Monthly deposits

A person opened a deposit of 5,000 rubles at 9% per annum for 3 months:

for the year: 5000*9/100=450 rubles in 90 days: 450 rubles for 365 days x rubles for 90 days x=450*90/365=110 rubles 96 kopecks 5110 rubles 96 kopecks the investor will receive at the end of the term * 365 is . In a leap year there will be 366. .

Deposit interest calculator

date	coming	amount on account
	5000	5000

* interest begins to accrue from the day following the day the money is received by the bank, that is, from (Article 839 Civil Code RF).

How to calculate the profitability of a replenished deposit with interest payment at the end of the term

The interest rate on replenished deposits is lower. This is explained by the fact that during the term of the deposit agreement the refinancing rate may decrease and the deposit will no longer be beneficial to the bank. That is, the bank will have to pay interest on the deposit higher than the interest that creditors will pay to the bank.

Exception: if the deposit rate depends on the refinancing rate. In other words, the refinancing rate increases - the interest on the deposit increases, the refinancing rate decreases - the interest on the deposit decreases.

An example of calculating interest on a replenished deposit

A person opened a deposit of 5,000 rubles at 9% per annum for 3 months. A month later, he deposited another 3,000 rubles:

for the year: 5000*9/100=450 rubles in 30 days: 450*30/365=36,986 rubles balance after 30 days: 5000+3000=8000 rubles recalculation for the year: 8000*9/100=720 rubles for the remaining 60 days: 720*60/365=118.356 rubles Total interest: 36.986+118.356=155 rubles 34 kopecks The total amount that the investor will receive: 5000+3000+155.34=8155 rubles 34 kopecks

Deposit calculator with replenishment

			contribute
date	coming	consumption	amount on account
	5000	0	5000
		0

How to calculate interest on a deposit with capitalization. What is this: “deposit capitalization”

Interest may be paid:

1. total amount at [ ending | termination | on the day of signing] deposit agreements.
2. the total amount is divided into parts and paid monthly, annually. The client can choose the most suitable option for himself:
   • with the frequency specified in the agreement or less frequently, come to the bank and withdraw the amount of accrued interest or automatically transfer them to plastic card. That is, “live on interest.”
   • capitalization of interest, also known as compound interest add accrued interest to the deposit balance. Just as if you came on the day of interest accrual, withdrew the amount of interest and replenished the deposit with it. The deposit balance increases and it turns out that interest is accrued on interest. Deposits with interest capitalization should be chosen by those who do not plan to withdraw the interest amount in installments. This advice does not apply to deposits where, under the terms of the agreement, partial withdrawal in the amount of capitalized interest is possible.

Formula for calculating deposit with capitalization

S = s × ⎛ ⎝ 1 + P×d 100×D⎞ ⎠ n S - the total amount that the investor will receive, s - the initial amount, P - the annual interest rate, d - the number of calendar days in the period, D - the number of days in the calendar year, n - the number of capitalizations

An example of calculating interest on a deposit with capitalization

On January 1, a person opened a deposit with a capitalization of 5,000 rubles at 9% per annum at 6 months 180 days. Interest is calculated and capitalized on the last day of each month.

5000 × (1 + 9/100 × 30/365)^3 × (1 + 9/100 × 28/365) × (1 + 9/100 × 31/365)^2 = 5000 × 1.02235634396 × 1, 00690410959 × 1.01534609946 = 5226.06 Refer to the table above:

• There will be 30 days in three months: January, April, June.
• There can only be 28 days in one month - February.
• 31 days will be in March and May.

When calculating the number of days in a period, you must also take into account that if the last day of the period falls on a non-working day, the end of the period is considered to be the next working day (Article 193 of the Civil Code of the Russian Federation). Therefore, calculators posted on the Internet will be close to reality, but they do not provide 100% accuracy. How can you calculate income for 2 years when the production calendar is approved annually?

How to check the correctness of interest calculation on a deposit, accurate to the penny

The technology malfunctions. When you have an account statement, it is not so difficult to manually recalculate the interest due.

Example: on January 20, a person opened a deposit with capitalization once a quarter for 5,000 rubles at 9% per annum at 9 months 273 days. On March 10, I topped up my account with 30,000 rubles. On July 15, he withdrew 10,000 rubles. April 20, 2014 and July 20, 2014 fall on a Sunday.

20.01-10.03: 5000*9/100*49/365=60,41 10.03-21.04: 35000*9/100*42/365=362,47 20.01-21.04: 60,41+362,47=422,88 21.04-15.07: 35422,88*9/100*85/365=742,42 15.07-21.07: 25422,88*9/100*6/365=37,61 21.04-21.07: 742,42+37,61=780,03 21.07-20.10: 26202,91*9/100*91/365=587,95

Is interest on deposits taxable? What deposits are taxable?

I assume that there may be a question about taxes, why a corresponding calculator has not been made.

Let's turn to the law (Article 214.2 Tax Code RF): if at the time of conclusion or prolongation extension contract up to 3 years interest on ruble deposit exceeds as of February 2014: 8.25% + 5% = 13.25% refinancing rate by 5 percentage points, That deposit rate minus 13.25% on interest income above this value A citizen of the Russian Federation needs to pay 35% tax. The bank must prepare the relevant documents.

In practice, no one sets a percentage higher than 13.25%:

Term interest capitalization is used when registering a deposit and means that interest will be added to its body at the frequency specified in the conditions and in the future the interest rate will be charged not only on the client’s funds themselves, but also on accrued income. The frequency of accrual of interest on a deposit may differ from bank to bank, but the most commonly used are daily, monthly, quarterly, and annually.

An alternative is the condition when the accrued interest is transferred to the client’s account or card, and he can use the money by withdrawing it from an ATM or receiving it at the bank’s cash desk. Subject to capitalization, the income and total cost of the deposit become greater. Moreover, the shorter the frequency of interest accrual or the longer the deposit term, the greater the difference in income between deposits with and without capitalization.

Income on deposit with interest capitalization in general case can be represented by the following formula:

D = B x (1 + P)^T, where

D - income on deposit;

B - deposit amount;

P - interest rate for one period for which interest is calculated;

T - the number of periods for which funds are placed.

As for the formulas different periods accruals, we will consider them below.

Deposits with daily capitalization

Such conditions are usually used in deposits with short terms (from several days to a couple of months) and in this case the accrual formula will look like this:

D = B x (1 + P/365)^T, where

D - income on deposit;

B - deposit amount;

T - deposit term in days.

For example, let’s take two identical deposits in the amount of 100,000 rubles and an interest rate of 10% per annum, the period for placing funds is 5 years. For a deposit without capitalization we will receive an income equal to 50,000 rubles, and with capitalization - 61,051 rubles. As you can see, the difference was more than 11,000 rubles. If interest is calculated quarterly, this difference will be even greater. Calculations for the example are presented in the table below:

day	without capitalization		with capitalization
	Money in deposit	Accrued interest	Money in deposit	Accrued interest
1	100 000,00	27,40	100 000,00	27,40
2	100 000,00	27,40	100 027,40	27,40
3	100 000,00	27,40	100 054,80	27,41
4	100 000,00	27,40	100 082,21	27,42
5	100 000,00	27,40	100 109,63	27,43
TOTAL		137,00		137,06

As we can see from the example, there is a small, but still benefit from using capitalization.

Monthly capitalization

In case monthly capitalization The calculation formula will be as follows:

D = B x (1 + P/12)^T, where

D - income on deposit;

B - deposit amount;

P - annual interest rate on the deposit;

T - deposit term in months.

Let's apply this formula to the previous example. You can see the calculation in the table below:

month	without capitalization		with capitalization
	Money in deposit	Accrued interest	Money in deposit	Accrued interest
1	100 000,00	833,33	100 000,00	833,33
2	100 000,00	833,33	100 833,33	840,28
3	100 000,00	833,33	101 673,61	847,28
4	100 000,00	833,33	102 520,89	854,34
5	100 000,00	833,33	103 375,23	861,46
TOTAL		4 166,65		4 236,69

As you can see, in this case the difference was already quite a noticeable amount.

Quarterly capitalization

The formula for calculating income on a deposit with quarterly capitalization will look like this:

D = B x (1 + P/4)^T, where

D - income on deposit;
B - deposit amount;

P - annual interest rate on the deposit;

T - deposit term in quarters.

quarter	without capitalization		with capitalization
	Money in deposit	Accrued interest	Money in deposit	Accrued interest
1	100 000,00	2 500,00	100 000,00	2 500,00
2	100 000,00	2 500,00	102 500,00	2 562,50
3	100 000,00	2 500,00	105 062,50	2 626,56
4	100 000,00	2 500,00	107 689,06	2 692,23
5	100 000,00	2 500,00	110 381,29	2 759,53
TOTAL		12 500,00		13 140,82

As we can see, the difference between the deposit with and without capitalization was already more than one thousand rubles.

Annual capitalization

For deposits with annual capitalization, the calculation formula will look most simple:

D = B x (1 + P)^T, where

D - income on deposit;

B - deposit amount;

P - annual interest rate on the deposit;

T - deposit term in years.

For example, let’s take the same conditions for the deposit. Calculations for the example are presented in the table below:

year	without capitalization		with capitalization
	Money in deposit	Accrued interest	Money in deposit	Accrued interest
1	100 000	10 000	100 000	10 000
2	100 000	10 000	110 000	11 000
3	100 000	10 000	121 000	12 100
4	100 000	10 000	133 100	13 310
5	100 000	10 000	146 410	14 641
TOTAL		50 000		61 051

At the same time, over five years the difference between the two deposits amounted to more than 11,000 rubles.

In addition to the capitalization accrual periods discussed above, banks may offer others, for example, once every six months, once every 10, 20, 100, 200, 400 days. Here the conditions are limited only by imagination bank workers responsible for deposit programs.

Pros and cons of capitalization

But while there is such a plus as increased income, deposits with capitalization also have a certain minus. When transferring interest to a card, the bank client can use the money received at any time, while under the condition of capitalization, all income remains in the bank until the last day and can only be withdrawn at the end of the deposit agreement.

Capitalization calculation in Excel

On our website you can download a form for calculating the contribution with capitalization in Excel. By substituting your data there you will be able to see your income on the deposit. In addition, the form allows you to make calculations taking into account partial withdrawal funds and deposit replenishment.

The capitalization condition is quite serious when choosing a deposit; the income that will ultimately be received depends on it, so it must be taken into account. To compare different investments, you can use our selection form, and to calculate the income on them - a calculator. Also on the pages of our website you can look at and select deposits with daily, monthly, quarterly and annual capitalization.