Compared with the bank, the deposits in the bank bear interest on an annual basis except for the current account, that is, the interest earned after one year of deposit, and your principal remains unchanged every day. Example: you deposit 1 0,000 yuan, with an annual interest rate of 3%. After maturity, your interest will be 30 yuan, but it will be paid in one year.
The daily interest calculation of insurance is to put the interest in the daily statement, so that your principal will gradually increase. For example, if the principal is 1 000 yuan and the daily interest is a, your principal will become 1 000+ 1 000 * A the next day and 1 000+0 the third day. The compound interest calculator can be used to calculate the actual interest on your principal after 365 days.
The annualized interest rate we usually hear in insurance companies is actually calculated according to 365 days (it needs compound interest to calculate, and it is definitely not calculated according to the daily interest *365).
Focus on the following:
The compound interest of insurance companies can only show its power after many years. The more compound interest, the higher the interest.
Generally, the concepts of daily interest and annual interest are easily confused in the sales process.
In the process of calculation, optimistic calculation of expected value will bring greater benefits.
Insurance products should be guaranteed as much as possible, and it is best to choose special wealth management products for net income.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.