Many Russians turn to the Central Bank. Mortgages, the interest rate for which, unfortunately, is quite high, is quite popular today. For many young families, it is the only way to buy their own apartment or house.
Let us analyze some theoretical questions of such a financial organization as the Central Bank. Weighted average interest rates are regulated by the Federal Law “On the Central Bank of the Russian Federation” (Bank of Russia).
Features of bank interest
The borrower pays a certain amount of interest to a credit institution . The interest rate on the loan of the Central Bank for today is determined by several features:
receiving bank profit from the client for the use of his money (loan interest);
for the ability of a financial institution to use the money of the client (deposit%);
Central Bank rate at which loans are issued to other banks (accounting);
interest on the risks associated with the issuance of a loan (discount).
Each of them is necessary for specific functions: regulatory, savings, redistribution. The interest rate of the Central Bank of Russia is calculated taking into account many factors.
Theoretical features of the calculations
At present, the classical formula is used in the Russian Federation, according to which the size of payments on a deposit account is calculated. You need to understand what factors affect this value in order to adjust them.
M = D * (1 + r / 100 * t / 360), where:
- M - the amount that will be received by the client after the termination of the deposit of funds;
- D is the size of the contribution;
- r is the interest rate of a financial institution;
- t - the number of days for which the bank receives financial funds from the client.
In financial institutions it is considered that in each month there are 30 days.
Practical Percentage Example
We analyze a specific option. The client plans to put 10,000 rubles in the bank at 3% per annum. He chose a term, namely six months. What amount will he be able to expect when closing a deposit?
10000 * (1 + 3% / 100 * 180/360) = 10000 * (1+ 0.03 * 0.5) = 10000 * 1.015 = 10150
This formula is applied only when the deposit is accrued once. What other bank interest options are possible? Let us dwell on this issue in more detail.
About the features of interest
In order to understand the profitability of a bank deposit, you need to know not only the interest rate on this deposit, but also the option of calculating bank interest. The interest rate of the Central Bank is based on simple and compound interest.
In the first case, accrual is carried out at a time, before closing the bank treasure.
Note that the Central Bank's annual interest rate on all deposits is indicated. In order to carry out calculations in other time periods, you can use the special formula. It includes the following parameters:
annual interest rate of the Central Bank, R;
total amount, Fv;
deposit amount in days, Td;
the number of days in a year, Ty;
initial deposit size, Sv
The formula for the calculations is as follows: Fv = Sv * (1 + R * (Td / Ty).
Important points
If we are talking about compound interest, then capitalization is carried out. This term is understood to mean the addition of interest to the main contribution and their consideration in subsequent calculations.
Compound interest is applied periodically, depending on the specifics of the selected bank deposit. It is difficult for an ordinary consumer to “make out” in a contract a mention of a specific variety. The only thing that is available for study is the interest rate of the Central Bank on a certain deposit.
If the agreement states that the accrual will be only at the end of the term, therefore, simple interest is used. In case of capitalization, it is indicated that deposit amounts are accrued annually, quarterly, monthly.
Bank Risk Options
It is customary to distinguish two types of risks inherent in financial institutions: banking and general. Within the framework of functioning, the structure faces numerous problems, therefore it is rather difficult to distinguish risks. There is a theoretical grouping of financial transactions:
banking (includes all options related to the activities of the bank);
credit (arising as a result of debts of enterprises or individuals who are recipients of loans at the bank);
currency (arising from sharp “jumps” in the exchange rate);
interest (reduction in the interest rate of the Central Bank is reduced to paying increased% for the use of money).
Rules for choosing a bank deposit
If the contribution involves compound interest, accruals on it will be carried out in several periods. Of course, each time we will talk about a larger amount, which is more profitable for the investor. A deposit (bank deposit) is a certain amount of money that a financial institution accepts from a client for some fixed term (or for an unlimited time period). According to the Civil Code of the Russian Federation, the bank is obliged at the request of the client to return the amount of money that has been paid, as well as to pay interest on the deposit established by the contract.
If a financial institution refuses to return funds to a client, the reason should be very good. For example, finding a client under investigation due to illegal actions, providing a citizen with false information at the time of concluding an agreement with a bank.
According to the legislation in force in the Russian Federation, deposits of individuals, the amount of which does not exceed 1.4 million rubles, are subject to insurance compensation. If the bank revokes the license, in this case the depositor is guaranteed to receive only this amount.
To summarize
In the Russian Federation, the Central Bank holds a key place in the financial structure. The weighted average interest rates for various loans are determined by him. To obtain accurate information on the total cost of all loans, the concept of ATP (weighted average rate) was introduced. ATP is considered a reflection of the average rate on any loans taken by the organization.
Its calculation is carried out according to the arithmetic mean. For example, if a company has taken three loans, the rates for which are 14, 12 and 16, then you can determine their average value: (14 + 12 + 16): 3 = 14 (%). Financiers note that the resulting number is not a characteristic of the organization's loan portfolio.
The cost of applying a loan depends on its size, therefore, for an enterprise that has loans with a lower percentage for a large amount in the loan portfolio, the cost of loans will be significantly less. That is why when calculating the total cost of loans, they do not use the average rate, but the weighted average, determined for each loan separately.
Despite the various nuances regarding the issuance of loans in the Russian Federation, according to the results of statistical studies, the number of loans annually increases both by individuals and by firms (small and medium-sized businesses). The reason is the desire to purchase certain goods, equipment, pay for studies, medicine, travel.