If 10000 yuan, the annualized interest rate is 4%; One-year interest is calculated according to compound interest as follows:
10000( 1+ monthly interest rate) 12- 10000
= 10000( 1+4%/ 12)^ 12- 10000
=407.42 yuan.
So the real interest rate is 4.07%.
Roughly speaking, if you save 100 yuan, if one day is 1 yuan compound interest, one month is 30 yuan's principal+compound interest, and the second month is the increase from 130, which is much worse than one year's compound interest.
Extended data:
1) The compound interest of insurance is different from that of banks. First, the base is different, and the "principal" of insurance is the principal after deducting a part of the handling fee; Second, the "interest rate" is different. Because insurance includes income dividends, the so-called "interest rate" is not fixed, and it is likely to be higher than the "2% guaranteed interest rate" in some years, and the dividend rate is different every year. So strictly speaking, the compound interest of insurance can only be expected and cannot be calculated. But we can still compare the expected value of insurance income by calculating the compound interest results of banks. Compound interest calculation formula: F=P*( 1+i)N (power) f: compound interest final value p: principal I: interest rate n: integral multiple of interest rate acquisition time.
2) Daily interest calculation means that as long as the policy exists, the company will calculate interest for customers every day. Customer guarantee time, when the policy is terminated, if it is not the beginning and end of the month, the company will calculate the interest according to the actual number of days.
Monthly compound interest is settled once a month, and the total amount after settlement last month is used as the base for settlement next month. The company publishes the accumulated interest rate on the external website every month. The accumulated interest-bearing account amount is compound interest.
Bank deposits bear interest on an annual basis except for current accounts, 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 the daily interest calculated according to 365 days.