Simple interest versus compound interest
When it comes to interest on your accounts, there are two main types to consider: simple interest and compound interest.
Simple interest is calculated from your initial deposit amount. For example, you made a $10,000 deposit with a 5% p.a. interest rate. At the end of five years, you’ll earn $2,500 in interest, regardless of any additional deposits made.
Compound interest calculates interest on your initial deposit as well as interest earned in previous terms. For example, if you invest $10,000 at 5% p.a., you’ll earn $2,833.59 in interest, even if you don’t make any additional deposits. It’s a good idea to learn about compound interest and understand the factors that impact the amount you’ll earn.
Manajemen Aset-Liabilitas
Manajemen aset-liabilitas yang efektif sangat penting untuk memaksimalkan Pendapatan Bunga Bersih.
Lembaga keuangan perlu memastikan bahwa mereka memiliki keseimbangan antara risiko suku bunga pada aset dan liabilitas mereka untuk menghindari ketidaksesuaian suku bunga yang dapat berdampak negatif terhadap Pendapatan Bunga Bersih.
Persaingan dari lembaga keuangan lain juga dapat memengaruhi Pendapatan Bunga Bersih lembaga keuangan. Jika pesaing menawarkan suku bunga pinjaman atau simpanan yang lebih menarik, lembaga keuangan dapat kehilangan bisnis dan mengalami penurunan Pendapatan Bunga Bersih.
Perubahan regulasi, seperti perubahan persyaratan modal atau suku bunga, juga dapat memengaruhi Pendapatan Bunga Bersih lembaga keuangan. Perubahan peraturan dapat memengaruhi biaya dana dan tarif yang dikenakan pada pinjaman, yang dapat memengaruhi Pendapatan Bunga Bersih.
Secara keseluruhan, terdapat beberapa faktor internal dan eksternal yang dapat memengaruhi Pendapatan Bunga Bersih suatu lembaga keuangan. Penting bagi lembaga keuangan untuk mengelola faktor-faktor ini secara efektif untuk memaksimalkan Pendapatan Bunga Bersih dan mempertahankan profitabilitas jangka panjangnya.
Interest is a payment from a bank account, credit card or loan, that builds up over a set period of time. Interest can be accrued (earned) by an account like a term deposit, and paid to you in a sum at the end of a specific term. Interest is also added to loan repayments as a charge for using the funds of the lender. Find out more about our interest rates and how they can benefit you.
What is the bank rate?
The bank rate is the rate at which the central bank lends money to commercial banks. But, as customers, you would be more interested in bank interest rate on your savings account. Assuming that your bank offers 4% interest on your savings account, you will receive ₹100 at the end of the quarter on an average balance of ₹10,000.
The higher the interest rate, the higher your income from your savings account balance. Besides, the frequency also matters. If the compounding occurs half-yearly, your interest income would be less. Most banks calculate the interest quarterly, as shown in the above example. IDFC FIRST Bank Savings Account interest is credited monthly, leading to even faster compounding.
Indikator Profitabilitas
Net Interest Income adalah penentu utama profitabilitas lembaga keuangan, karena mencerminkan pendapatan inti yang dihasilkan dari aktivitas pinjaman dan investasinya. Net Interest Income yang lebih tinggi menyiratkan profitabilitas yang lebih tinggi, yang penting untuk keberlanjutan jangka panjang lembaga keuangan.
IDFC FIRST Bank Savings Account - a gamechanger
You must have understood by now that a higher rate of interest translates into a higher return on your account balance. Similarly, frequent interest credits lead to faster compounding, helping you achieve your financial goals sooner.
IDFC FIRST Bank Savings Account ticks the boxes on both these parameters. Its savings account bank interest rate is among the best in the industry and is comparable to even fixed deposit interest rates. But that’s not all! It also slashes down the costs that are typically involved in operating a savings account. IDFC FIRST Bank Savings Account offers zero-fee banking on all commonly used savings account services. This includes –
Also read - Build your emergency fund with some of the best savings accounts
Banking 101: What is interest?
Whether you’re trying to make a purchase, pay off an existing loan, or build credit, borrowing money may be a great solution. Before you commit, it’s important to understand the terms of the loan, specifically the interest.
So, what is interest? Interest is money charged by a financial institution for the service and benefit of borrowing money. When a bank or lender extends a line of credit to a borrower, they are taking a risk and interest can be thought of as a service fee for this risk. Interest rates can vary based on the creditworthiness of the borrower.
Any legitimate lender is required to disclose the terms of a loan before you agree to borrow money but understanding (and sometimes deciphering) those terms can be a challenge.
Below we guide you through three types of interest to give you an advantage in making informed decisions about which loan is right for you.
Sometimes referred to as “regular” interest, simple interest is the amount of interest due on a loan.
For example, if you borrow $1,000 at a 3% fixed annual interest rate, you will pay $30 in interest per year. When considering any loan, it’s important to know if the interest rate is fixed or variable.
Another factor to be aware of with a simple interest loan is if there are any penalties for early payoffs. Without these penalties, you can save money on interest by paying off your loan before it is due in full.
A good way to think of accrued interest is to equate it to the time in a payment period. As time in the period increases, so will the amount of interest that is owed or “accrued.”
For example, if the amount of interest that you’re charged each month is $30, you’re paying $1 per day in that period until the money is paid back. If the lender is paid on the 24th of the month, the amount of interest will be $24.
Compound interest occurs when the principal (or original amount borrowed) and the interest are combined to create a new balance. The new balance is then used to determine an interest rate to be charged. This type of interest is referred to as “interest on interest” as it is compounded.
Compound interest rates are most often attached to credit cards, which have variable rates. Be sure you’re aware of what the various rate boundaries, especially the maximum you can be charged.
Westfield Bank is personally invested in your banking success. Since our founding in 2001, we’ve embraced the idea that sharing knowledge with every customer we serve builds trust and ultimately promotes your financial growth.
Banks in countries like Denmark and Japan strangely have zero or even negative interest rates. People in those countries would not ask the obvious question while opening a savings account - what is the bank rate?
But in India, the most important task while opening a bank account is to check what bank rate is being offered. You can earn a high return on your savings account deposit, depending on RBI’s prevailing bank rate policy. So, you must make sure that your savings account is cascading the benefit of RBI’s high repo rate.
Pengertian Interest Expense
Interest Expense atau biaya bunga adalah beban yang timbul karena penggunaan dana pinjaman. Biaya ini dicatat dalam laporan laba rugi sebagai biaya non-operasional dan berasal dari berbagai sumber pinjaman seperti pinjaman bank, jalur kredit, dan obligasi.
Biasanya, biaya bunga dapat dikurangkan dari pajak, sehingga penggunaan utang menjadi opsi pendanaan yang lebih ekonomis dibandingkan dengan ekuitas. Akan tetapi, penting diingat bahwa terlalu banyak utang juga membawa risiko. Jika peminjam tidak mampu memenuhi kewajiban utangnya, perusahaan berisiko menghadapi kebangkrutan. Untuk itu, tim manajemen selalu berusaha mengurangi biaya bunga dengan mempertimbangkan aset yang dimiliki dan kapasitas pendapatan bisnis yang tersedia.
Beban Bunga Majemuk
Beban bunga majemuk dihitung dari jumlah pokok serta akumulasi bunga dari periode sebelumnya. Rumus beban bunga majemuk adalah:
Beban Bunga Majemuk = A - P
Catatan:A adalah jumlah akhir P adalah jumlah pokok
A dan P dihitung menggunakan rumus bunga majemuk:
Rumus Menghitung Net Interest Income
Rumus untuk menghitung Net Interest Income adalah:
Pendapatan Bunga Bersih = Pendapatan Bunga Bruto - Beban Bunga Bruto
Di mana:Pendapatan Bunga Bruto = Total bunga yang diperoleh dari pinjaman dan aset penghasil bunga lainnya seperti sekuritas, obligasi, dan investasi.Beban Bunga Bruto = Total bunga yang dibayarkan pada deposito dan kewajiban berbunga lainnya seperti pinjaman, obligasi, dan sertifikat deposito.
Dengan mengurangkan total bunga yang dibayarkan dari total bunga yang diperoleh, rumus tersebut menentukan jumlah uang yang diperoleh lembaga keuangan dari aktivitas yang menghasilkan bunga, yang mewakili Net Interest Income-nya.
Beban Bunga Efektif
Suku bunga efektif adalah biaya pinjaman yang sebenarnya dengan mempertimbangkan semua biaya dan biaya yang terkait dengan pinjaman. Rumus beban bunga efektif adalah:
Beban Bunga Efektif = Total Pembayaran Bunga + Total Biaya / Saldo Pinjaman
Total Bunga yang Dibayarkan adalah jumlah total bunga yang dibayarkan selama masa pinjaman
Total Biaya adalah jumlah total biaya dan ongkos yang terkait dengan pinjaman
Saldo Pinjaman adalah saldo pinjaman.
Contohnya jika sebuah perusahaan meminjam $100.000 dengan tingkat bunga tahunan 5%, beban bunganya untuk tahun tersebut adalah $5.000 (yaitu, $100.000 x 5%). Beban bunga akan dicatat sebagai kewajiban di neraca perusahaan sampai lunas.
Beban bunga juga bisa merujuk pada pembayaran bunga yang dilakukan pada obligasi atau surat utang lain yang diterbitkan oleh perusahaan. Dalam hal ini, beban bunga adalah jumlah bunga yang dibayarkan kepada pemegang obligasi atau investor selama jangka waktu tertentu.
Perlu diperhatikan bahwa beban bunga dapat berdampak signifikan terhadap kinerja keuangan dan profitabilitas perusahaan, terutama jika perusahaan memiliki tingkat utang yang tinggi atau beroperasi di lingkungan dengan tingkat bunga yang tinggi