As you can see, the pricing of a loan is essentially the same as the pricing of everyday consumer goods or other services. First you have to calculate the annual interest, then the interest or the repayment volume according to your wishes. With a loan interest calculator in the network, there is no manual calculation, since it quickly calculates the corresponding result using the currently valid interest rates. An example illustrates how the interest amount for overdrafting an account is calculated. Good day! My girlfriend got an offer from VW for a new polo.
How to determine mixed interest rates?
a 2 (3.75): 108.210, – USD will be redeemed in 20 years, reason: the D 1 must be withdrawn “only” 700, – over a period of 10 years. You pay the difference to the installment payment (343.32 dollars) without repayment + interest portion for D2. Because D2 is paid off with the rate of 1043.32 and the interest even in 10.4 years.
So you pay 10 years, 343.32 USD, so that the house bank offers you the “favorable” conditions (3.75%) for the following 10 years.
Negative interest (penalty interest) is calculated for current accounts
Fine Bank has given the go-ahead by sending its customers the message in November of last year about the “Adjustment of fees and interest for Fine Bank accounts”. Specifically, this means that from this year onwards, customers will lose their credit balance every day. The SNB also requires this interest rate for bank balances with banks.
Calculating negative interest rates for private customers is an innovation that has never existed before. There is also a negative interest rate, which is, however, only calculated if the credit balance is very high. In the meantime, it can no longer be assumed that a loan from a house bank will grow, this affects the entire EU.
Negative interest rates are by no means the norm, but most customers hardly get any interest either. The alternative bank in Switzerland also implemented these measures, but that was not enough. The Fine Bank had to pay $ 700,000 in negative interest to the SNB. Assuming a planned profit of around one million francs, this number was clearly too high.
The Swiss central bank can only lend the funds due on a daily basis to a limited extent. The Fine Bank therefore informed private customers that the current account money could no longer be used sensibly. Because the amount of money as “excess liquidity” in a bank account of the Nat. lies. There is negative interest.
This means that if a house bank has more money than it needs, it would result in it. The Fine Bank would not have to leave the money to the central bank, but could pass it on to other institutions. However, interest rates would be even lower. Fine Bank is headquartered in Upper Austria, Switzerland, and was set up in Switzerland in 1990 as an unlisted AG.
But for capital to be borrowed in the long term, it must also be available in the long term. This applies to savings books, but not to current books. Private customers therefore have the choice of investing their capital in savings books or time deposits. In these cases, no negative interest is charged because the house bank can work with this amount of money permanently.
ING Diba conducted a survey in 13 countries to find out how consumers respond to negative interest rates. About 75% of the participants said that they would deduct their capital from the savings fees. The reaction of Fine Bank customers was more moderate, as the house bank had offered alternative options.
A good quarter of all current account balances were withdrawn and transferred. But customers have also withdrawn their capital from other accounts. In this way, however, the Fine Bank has achieved its desired result because it has fewer funds and cheaper credit balances. This was a new approach, but the National Bank itself stated that the population was more outraged than the consumers concerned.