What is the interest rate in a bank?

Many citizens actively use the services of banks. Financial institutions provide loans, deposits for which interest is accrued. This issue should be approached very carefully so that in the future there will be no difficulties. If each client wants to receive a low interest rate for a loan, then when investing their own funds - more profitable. But each bank puts forward its terms for services. What is the interest rate, and how is it calculated?

Definition

Many believe that if the percentage is 12%, then the entire overpayment is 12%. But this is not true, since this indicator is calculated for the year. If, for example, a loan is issued for 5 years, the interest is calculated for each year of using the money. It is levied from the remainder. The longer the crediting period, the greater the overpayment.

With the registration of the contract should pay attention to the conditions. All financial institutions charge a different percentage. For example, MFIs have overpayments for each day, and banks usually for a year. What is the interest rate on deposits? This is the amount of profit that is accrued to the client for the temporary provision of money to the bank.

What affects the bet?

The interest is calculated on the basis of the Central Bank's rate. For example, if it is 8%, then no organization can not lend money for a smaller overpayment. Usually in banks, services are provided at a higher percentage.

There is such a term as inflation. Every year there is a devaluation of money. If banks set low rates, they do not make a profit.

What does the cost of credit include?

The borrower needs to know not only what is the interest rate, but also what includes the loan. It is calculated on the basis of:

• The level of inflation: in Russia it is about 7% per year;
• The bank does not deal with the issue of its own funds, for this, it has depositors: for servicing deposits, funds that are included in the loan are required;
• In some cases, banks themselves borrow money from other organizations, and borrowers pay interbank interest;
• Each bank has non-payers, which is also included in the cost of the loan;
• The bank takes into account its development: it needs to pay salaries to employees, cover other expenses, for which customers also pay.

Given these rules of calculation, we can say that such an interest rate. This is a compensation of spending the bank for their own needs and for making a profit.

Low interest rate

It is often possible to find banks whose interest rates are quite low. Each borrower wants to receive funds so as not to overpay a lot. But even a small rate does not indicate that the loan will be cheap.

In advertising, the bank always indicates the lowest interest rate per year. Such services are provided to only a few clients. In fact, this is an advertising move, but the real borrower will find out the real rate after leaving the application and submitting documents. The percentage is determined by the solvency of the borrower, its credit history and other factors. With an increase in interest, the bank covers its risks by formalizing an agreement with the borrower.

A small bet indicates a lot. The bank will always get its benefits, but the borrower has the following expenses:

• Insurance premiums;
• Fees for the opening and maintenance of a credit account;
• Fines and penalties for delay;
• Charge for early repayment;
• Paid SMS-informing and other services.

Before signing the contract, you should carefully read the information that it contains. Also it is necessary to find out from the specialist what additional fees to pay to the bank. Only bona fide payers have the opportunity to use low interest rates for 2016.

Maximum Bid

In the banking sector, both the minimum interest rate and the maximum interest rate are effective. This is determined by current legislation. The loan can not be more than 57.3% per annum. Over time, this indicator may vary.

This rule applies to banking institutions, and microfinance institutions do not work for it. That is why the latter provide citizens with money in debt at 500-800% per annum.

Bet types

Interest rates in banks are a constant amount, especially for consumer loans and mortgages. They are determined before the conclusion of the contract, after which the client receives a payment schedule. On it and repayment is carried out.

But the percentage is also floating, about which the employee is obliged to warn the client before the conclusion of the contract. This means that the lender himself decides to change the amount of the overpayment. And the duty of the client is to pay the designated interest. Such conditions usually apply to credit cards, which is not beneficial to the public.

How to install overpayment?

The setting of monthly payments is determined by the debt repayment system. It is annuity and differentiated. In the first case, all amounts are equal until the end of the payment period. And with the second option, the monthly amount decreases.

You can determine the overpayment on the site of each institution. For this, there is a system of online payments, but specific information will be provided to the employee. It should be borne in mind that interest is not the ultimate cost of a loan, banks include more fees and commissions. This can be determined by the loan agreement. Interest rates on deposits are also indicated in the document.

How to affect the interest rate?

Banks offer different terms to all clients, although the credit program operates alone. This is determined by the fact that the decision to grant a loan is made on the basis of the documents provided. But the final price of a loan depends on such factors as the level of salary, availability of security, the status of the credit history, age.

To obtain favorable conditions, stable work with a high level of payment, a rich work record and a good credit history are necessary. But when, for example, a borrower has early repaid loans, a large percentage can be set. The reason for this is the bank's loss of profit, if an early payment occurs.

Marketing rate - what is it?

This type of bet is usually offered in car dealerships. Favorable 0%, which act as promises, do not apply to overpayment on a bank loan. The marketing rate assumes reception of the discount for the goods at a rate of those money which it would be necessary to pay to bank. In the contract for the purchase indicated the price of the car at a discount, and it is on its basis will be calculated interest. Usually it is 10-12%.

If the indicator is not equal to 0, then a discount is provided for the difference in the marketing and banking rates. This money is paid by the dealer to the bank on the basis of the contract. As a result, the buyer buys a car at a lower price. Only he should still take into account his finances, as well as carefully read the contract. Often, such transactions are issued insurance, which have a high percentage.

Thus, if you want to apply for a loan, you need to familiarize yourself with the amount of interest, as well as additional conditions. Some banks fees and commissions already include an annual rate, and therefore unnecessary costs will not be required. But since the borrower is important in the cost of credit, the latter option for him will be less profitable. Only if the client is satisfied with all the conditions, he can draw up a contract.