Interest rate by. Percentage allowance
Placed in a deposit account.
Bank is an organization whose main income is made up of the difference between the price of attracting and placing financial resources. At the same time, the price of money, like any other product from the point of view of the economy, is determined by supply and demand.
Interest rates on deposits depend on the following main indicators:
- macroeconomic situation... If the economy is on the rise, then the demand for credit is higher. As a result, deposit rates are growing. On the contrary, if the economy enters the stage of recession, then the demand for money decreases: consumer lending decreases, production falls. As a result, banks are forced to reduce interest rates on deposits.
The inflation rate and the stability of the national currency are the key indicators in determining the rates. The lower the inflation rate, the more stable the ruble, the less interest the banks can replenish their resources. The destabilization of the situation leads to an increase in interest rates on deposits.
At the same time, not only the current situation on the international or domestic market has an impact, but also the expectations of changes in the macroeconomics, since financiers take into account the timing of raising and placing funds;
- liquidity and money supply in the country... The shortage of money leads to an increase in the cost of credit resources and, accordingly, high rates on bank deposits. For example, if the state carries out large-scale borrowing in the domestic market, this leads to the so-called sterilization of the money supply, i.e. to a reduction in the supply of money, and, accordingly, to an increase in interest rates on deposits. On the contrary, the emission of money, as well as the provision of loans by the Central Bank to the banking sector, increases the supply in the market and reduces rates.
The general condition of the financial sector and the liquidity of the banking system significantly affect the interest on deposits. Each commercial bank independently determines who and for how long to lend. In this case, there are situations when, at a certain period of time, the financial system as a whole experiences a shortage of funds, which must be returned later when repaying loans. At such times, interest rates rise;
- government regulation... Despite the fact that the Central Bank and the state as a whole do not have a direct legislative influence on the size of interest rates on deposits, this influence may be indirect. Thus, a change in the refinancing rate, taxation of income received from deposits in credit institutions, the use of other means of conducting monetary policy are possible.
On the part of regulators, non-economic measures of influence on interest rates are also possible, for example, the initiation of checks on credit institutions that pay too much on deposits;
- microeconomic factors... In addition to indicators common for the country's economy and the financial sector, the amount of interest on deposits also reflects the situation of each specific bank separately. So, if a credit institution enters, for example, the POS lending market and it has more and more new customers, then it offers a higher percentage of deposits than under normal conditions. That is, the interest rate on deposits may directly depend on the bank's ability to increase its loan portfolio, on the demand for resources from clients.
For a credit institution, the size of interest rates is also influenced by its liquidity, that is, the ratio of the timing of raising funds and the time for which they are placed. In the event of insufficient liquidity, and even more so with the threat of so-called cash gaps, banks are ready to pay more on deposits.
Thus, the size of interest rates on deposits is determined by a whole range of both external and internal components. At the same time, competition between credit institutions leads to a gradual equalization of interest. The current situation in the market of bank rates can be found in the specialized section "Deposits" of the Banki.ru website.
When calculating the interest payable to the depositor and comparing the profitability of deposits, the interest payment regime must be taken into account. The frequency of interest payments is determined by the agreement. This can be a one-time payment at the end of the deposit term, when the principal is returned. Banks also offer deposits with periodic interest payments - annual, quarterly or monthly. Occasionally there are deposits even with daily interest payments. Periodic payment can be tied to the date of opening a deposit or to calendar periods - for example, the accrual will be carried out on the first calendar (or first working) day of a month or quarter. In the case of periodic payments, the direction of interest payment matters. The interest paid can be directed both to the client's current or card account (in which case the client is free to use the accrued interest), or by joining the principal amount of the deposit. At the same time, in subsequent periods, interest will be charged already on the amount of the deposit, increased by the interest paid. The resulting payments on such deposits - with interest capitalization - will be higher in comparison with the option when the settlement occurs once, on the day the term expires.
As a rule, in case of early termination of a deposit agreement on the initiative of the depositor, the bank recalculates interest based on the rate of demand deposits adopted by the bank, or at preferential rates of early termination, if such are provided for by the agreement.
Bank interest is nothing more than a fee for the use of borrowed funds. In civilian circulation, the most well-known cases of interest are fees for and fees for a deposit. In both cases, there are two subjects in the relationship, one of which is always a banking institution, which, on the basis of certain methods of economic calculations, determines the amount of bank interest for a specific type of transaction.
Types of bank interest
In the practice of banking activities, there are several types of interest:
- loan (credit),
- deposit,
- discount,
- accounting.
Loan interest - this is the amount that is charged to the borrower for the use of credit funds. The deposit interest is essentially the same as the loan interest, but the borrower in this case is a banking institution, which pays you a fee for using your money in the form of this very deposit interest.
Discount percentage assumes the amount of discount from any amount in a monetary transaction. The discount rate is the rate determined by the Central Bank at which this institution issues borrowed funds to other banks.
Calculation of bank interest
In financial practice, it is customary to calculate bank interest in annual terms. This means that if the bank indicates that the rate of funds accepted for deposit is, for example, 10% per annum, you will receive an amount greater by this 10% accrued during the year. If you need to calculate how much it will be received per month or per day, just divide the interest rate by the period of time you need. To find out how much you get in a month, you need to divide 10% by 12 (the number of months in a year). And to calculate the interest per day, it will be necessary to divide the interest rate by 365 (the number of days in a year).
Simple and complex bank interest
The accrual of bank interest can be done in two ways, called simple and compound interest. In the first case, it is understood that the amount of the loan (deposit) is always taken as the basis for calculations during the term of the contract. Compound interest takes into account that in each subsequent period, the amount on which the interest is calculated increases by the amount of interest received in the previous period.
Traditionally, deposits on which the bank charges compound interest are considered to be more profitable. For loans, the situation is reversed. Interest is considered profitable if it is calculated not on the entire loan amount, but on the balance of funds not returned to the bank.
Calculation of the bank interest rate
Before signing a loan agreement, it is advisable to understand what amounts will have to be paid, therefore, the correct calculation of the bank interest rate is important. Many online banks offer the borrower on their websites a calculator for these calculations, but in fact it is not so easy to apply it, but it is possible to make an approximate calculation.
Many methods for calculating bank interest rates are complex and require mathematical knowledge. Therefore, we will focus on simpler methods. If you add up all the payments offered in the list, you can calculate the approximate percentage that will have to be paid for the borrowed funds:
- interest on the loan;
- all bank commissions (for consideration of an application, opening, maintaining an account, and so on);
- all life insurance services and others;
For a correct calculation, you should take into account various circumstances that may arise at the time of using borrowed money, for example, early repayment, penalties, fines and much more.
Some of the bank's clients, on the contrary, trust the credit institution to keep their finances. The bank pays interest for this, its size depends on many factors.
Interest rate in brokerage companies
The brokerage company is an intermediary between the seller and the buyer. If earlier only banks were engaged in savings operations, now such services are becoming more and more popular in other institutions. The client's assets in a brokerage office can also be of a savings nature. The broker can use the free funds on the client's deposit for his own purposes and pay the client for this.
Interest in brokerage companies changes frequently, so it is calculated daily and deposited at the end of the month. Brokers offer different interest rates. If a client enters into many transactions, then the option with a reduced interest rate will be convenient for him (Commission - 0.015%, SWAP - 1 pip, Interest rate - 3%). For strategic investors, a high percentage is important, since deals are rarely concluded (Commission - 0.03%, SWAP - 0 pip, Interest rate - 6%.). The client is obliged to make at least one transaction for the interest rate in brokerage companies to start crediting to the deposit.
When lending, there are several features of bank interest
The borrower pays the interest rate to the credit institution; today, when lending, there are several features of the bank interest:
- loan (receipt of profit by the bank from the client for the use of money);
- deposit (paid by the bank to the client for the opportunity to use his money);
- discount (Central Bank rate at which loans are issued to other banks);
- discount (% for the risks associated with the issuance of a loan).
Each of them is designed for specific functions: savings, regulatory and redistributive. The calculation of the bank's interest rate is influenced by many different factors.
What determines the size of the bank interest
At the moment, there is a unified formula for calculating the interest rate on a deposit account. You need to understand what determines the size of the bank interest and take into account that various factors can adjust it:
M \u003d D * (1 + r / 100 * t / 360).
M - the amount received by the client at the end of the investment period;
D is the amount of the deposit;
r is the bank's interest rate;
t is the number of days for which the client entrusts his finances to the bank.
In the financial world, there are 30 days each month.
Example: put 100,000 rubles in a bank at 3% per annum for a period of 6 months.
100000 * (1 + 3%/100 * 180/360) = 100000 * (1+ 0,03 * 0,5) = 100000 * 1,015= 101500
The proposed formula is suitable only for those, interest on which is charged once a year. If interest on a deposit is credited several times a year, for example, every month, then you will have to calculate interest using a complex banking formula:
M \u003d D * (1 + r / 100 * 30/360) ^ (360/30).
Types of banking risks
The types of risks of financial institutions are divided into general and banking risks; it is rather difficult to distinguish between them. In the course of operation, the enterprise faces various problems. In specialized literature, types of banking risks are grouped by financial transactions:
- banking risk (this includes risks associated with the activities of the bank and general risks that depend on external influences);
- credit risk (arises from overdue debts of clients or companies that receive loans from the bank);
- currency risk (associated with changes in the exchange rate);
- interest rate risk (interest rate fluctuations force the bank to pay higher interest for using money or receive less income from loans provided);
There are risks in any enterprise, so it is important for the bank not to avoid them, but to anticipate and, as a result, reduce the threat to a minimum.
Microfinance organizations (MFOs) have limited interest on microloans.
Limitation of interest on microloans
From January 1, 2017, Articles 12 and 12.1 of the Federal Law "On Microfinance Activities and Microfinance Organizations" of 02.07.2010 N 151-FZ entered into force, which introduce a ban on collecting unreasonably high interest rates on consumer microloans from borrowers by Microfinance Organizations (MFOs). What is the reason for the limitation of interest on microloans? The reason is as simple as the world - Microfinance organizations (MFOs), striving to obtain super profits, issue microloans instantly and practically without checking the client's solvency.
Microloan - This is a small loan that is provided for a short period of time, and as a rule, without confirmation and verification of the borrower's solvency.
In article 2 of the Federal Law No. 151-ФЗ dated 02.07.2010, the concept of "microloan" is described as follows:
3) microloan - a loan provided by the lender to the borrower on the terms stipulated by the loan agreement, in an amount not exceeding the maximum amount of the borrower's obligations to the lender for the principal debt established by this Federal Law;
According to Federal Law No. 151 of July 2, 2010, the amount of a microloan issued to one borrower cannot exceed one million rubles. The actual issue of microloans in the amount of up to 30-50 thousand rubles. issued only with a passport and naturally without checking the client's solvency.
Federal Law No. 151 of July 2, 2010 There are two types of restrictions on the accrual of interest by Microfinance organizations (MFOs) on registered consumer microloans, namely:
- Three-fold limitation of interest accrual under a consumer microloan agreement.
- Termination of accrual of interest on overdue loans as soon as interest reaches double the amount of the outstanding part of the debt.
The Bank of Russia explains the essence of the restrictions introduced by Federal Law No. 151, which boils down to the following:
1.From January 1, 2017, a three-fold restriction on the accrual of interest under a consumer microloan agreement concluded from this date comes into force.
If the repayment period under the agreement does not exceed one year, microfinance organizations (MFOs) are not entitled to accrue interest to an individual borrower after their amount reaches three times the amount of the loan.
So, for example, with a loan of 5,000 rubles, the borrower's debt, at no point in time, can exceed 20,000 rubles. This amount includes:
- loan amount of 5000 rubles
- accrued interest in the amount of 15,000 rubles (5,000 rubles x 3).
The Bank of Russia draws the attention of borrowers to the fact that the restriction established by the law on the amount of interest does not apply to forfeit (fines, penalties), as well as to payments for services rendered to it for a fee.
This is how it is stated in the Federal Law of 02.07.2010 N 151-FZ (as amended on 03.07.2016) "On microfinance activities and microfinance organizations" (as amended and supplemented, entered into force on 01.01.2017) :
Article 12. Restrictions on the activities of a microfinance organization (as amended by Federal Law of December 29, 2015 N 407-FZ)
1. A microfinance organization is not entitled to:
9) charge the borrower - an individual with interest under the consumer loan agreement, the repayment period of the consumer loan for which does not exceed one year, with the exception of forfeit (fine, penalty) and payments for services rendered to the borrower for a separate fee, if the amount accrued on the interest agreement will reach three times the amount of the loan. The condition containing this prohibition must be indicated by the microfinance organization on the first page of the consumer loan agreement, the repayment period of the consumer loan for which does not exceed one year, before the table containing the individual terms of the consumer loan agreement; (as amended by FZ from 03.07.2016 N 230-FZ)
2. The second restriction concerns the delay in repayment of a short-term (up to one year) consumer microloan: after the occurrence of delay, the MFO can charge the debtor interest only on the remaining (outstanding) part of the principal amount, but the accrual will stop as soon as the interest reaches twice the amount of this amount.
At the same time, the MFI will be able to restart the accrual of interest only after the borrower partially repays the loan and (or) payment of the due interest.
Forfeit (fines, penalties) should be charged only on the part of the principal amount not repaid by the borrower.
So, for example, if the outstanding part under an overdue agreement is 5,000 rubles, the amount charged to the borrower will be 15,000 rubles, which includes the amount of overdue debt - 5,000 rubles and accrued interest - 10,000 rubles (5,000 rubles x2).
Each MFI is obliged to place information on these restrictions on the first page of a short-term consumer loan agreement before the table with individual terms of the agreement.
The Federal Law of 02.07.2010 N 151-FZ "On Microfinance Activities and Microfinance Organizations" (as amended and supplemented) states this restriction as follows:
Article 12.1. Specifics of calculating interest and other payments in case of delay in the fulfillment of loan obligations (introduced by Federal Law No. 230-FZ of 03.07.2016)Sources:
1. After the occurrence of a delay in the fulfillment of the obligation of the borrower - an individual to return the loan amount and (or) to pay the interest due, the microfinance organization under a consumer loan agreement, the repayment period of the consumer loan for which does not exceed one year, has the right to continue to accrue interest to the borrower - an individual only on unpaid part of the principal amount. Interest on the part of the principal amount not repaid by the borrower continues to accrue until the total amount of interest payable is reached, equal to two times the amount of the outstanding part of the loan. A microfinance organization is not entitled to accrue interest for a period of time from the moment the total amount of interest payable is reached, amounting to two times the amount of the outstanding part of the loan, until the moment of partial repayment of the loan amount by the borrower and (or) payment of the due interest.2. After the occurrence of a delay in the fulfillment of the obligation of the borrower - an individual to return the loan amount and (or) to pay the interest due, the microfinance organization under a consumer loan agreement, for which the consumer loan repayment period does not exceed one year, has the right to charge the borrower - an individual a penalty (fines, penalties) and other measures of responsibility only for the part of the principal amount not repaid by the borrower.
3. The conditions specified in parts 1 and 2 of this article must be indicated by the microfinance organization on the first page of the consumer loan agreement, the repayment period of the consumer loan for which does not exceed one year, before the table containing the individual terms of the consumer loan agreement.
- Notification of the Bank of Russia dated 01.01.2017 - "Restricted the accrual of interest on short-term microloans"
- Federal Law of 02.07.2010 N 151-FZ "On Microfinance Activities and Microfinance Organizations" (as amended and supplemented)
- Federal Law of 03.07.2016 N 230-FZ "On the protection of the rights and legitimate interests of individuals in the implementation of activities for the return of overdue debts and on amending the Federal Law" On MICROFINANCE ACTIVITIES AND MICROFINANCE ORGANIZATIONS "
The interest rate specified in the loan agreement is its essential condition. In most cases, a credit institution, after agreement with the borrower, establishes the procedure for determining the loan rate, its size, including depending on the changing conditions provided for in the agreement between the parties to the transaction. This moment is spelled out in clause 1 of Article 819 of the Civil Code of the Russian Federation; Part 1 of Art. 29, part 2 of Art. 30 of the Law of 02.12.1990 No. 395-1; Clause 4, Part 9, Art. 5 of the Law of December 21, 2013 No. 353-FZ.
In this article we will understand what is the maximum amount of interest on a loan that the bank has the right to establish and MFIs. We draw your attention to the fact that our material examines the issues of the maximum interest rate of consumer loans (targeted and non-targeted loans to individuals).
How is the interest rate on consumer loans regulated?
If you turn to Part 1 of Art. 9 of Law No. 353-FZ, then we learn that the interest rate under a consumer credit agreement can be either fixed or variable. Different types of interest rates on loans are selected depending on the loan products and lending conditions in certain banks.
A credit institution, in most cases, under a loan agreement concluded with a borrower who is an individual, does not have the right to independently change the amount of interest on the loan or reduce the term of the agreement.
If we talk about consumer loans, then the bank unilaterally has the right only to reduce the interest rate on consumer loans on the basis of part 4 of article 29 of Law No. 395-1 and part 16 of article 5 of Law No. 353-FZ.
In the consumer loan agreement, in which the conclusion of the insurance agreement is mandatory, a condition may be prescribed that the lender has the right to decide to increase the interest rate on the loan.
This can happen if the consumer does not fulfill his life insurance obligations for more than 30 calendar days (health, loss of work, ...).
Thus, if, when receiving a loan for several years, the client insured his life only for the first year, and then did not insure himself, then in a year the bank can raise the interest rate on the consumer loan already issued.
Please note that in the case when the borrower refused insurance and the bank went to increase the interest rate on an existing loan, then this rate can be increased only to the level that was fixed at the time of signing the loan agreement in accordance with Part 11 of Article 7 Law No. 353-FZ.
At the legislative level in Russia, there is a limitation on the total cost of a loan (CCC), which has a direct impact on the size of the interest rate in Russian banks.
According to the law, in the loan agreement, the bank cannot establish interest on consumer loans, exceeding the average market value of interest rates by more than one third. The Central Bank of Russia calculates the average market value of interest rates on a quarterly basis.
The Central Bank has the right to cancel the restriction on interest rates on loans from banks only if a fundamental change in market conditions occurs in the country (according to part 11 of article 6 of Law No. 353-FZ).
On a note! The Bank of Russia, once a quarter, calculates the average market value of the PSI as a weighted average value for at least 100 leading banks of the country, as for certain types of credit products, or at least for credit products of one third of the total number of credit institutions in the Russian Federation (according to Part 10 of Art. 6 of Law No. 353-FZ).
The Bank of Russia publishes the average market value of the CPC once a quarter in the form of information and analytical materials on the official website of the Central Bank of the Russian Federation - "Information on the average market values \u200b\u200bof the full cost of a consumer loan (loan)."
What is the maximum amount of interest on microcredit can be set by an MFI?
Let's look at the features of interest rate restrictions on microloans issued not by a bank, but by a microfinance organization (MFO).
If a consumer loan agreement was concluded with an MFO for a short period (up to 12 months) starting from 01.01.2017, then the interest rate on it is limited to three times the amount of the loan.
The exception is payments to the MFO for additional services, as well as fines and penalties in case of delays (see 9 part 1 of article 12 of the Law of 02.07.2010 No. 151-FZ and part 7 of article 22 of the Law of 03.07.2016 No. 230-FZ).
If we talk about consumer loan agreements that MFOs concluded in the second quarter of 2017, then the average market value of the CPL for a consumer microloan without collateral (with the exception of POS microloans), for an amount of up to 30,000 rubles and for a period of 30 days inclusive, amounted to 599.367%. Thus, the maximum CPR was 799.156%.
Please note that if you took a microloan from an MFO under a short-term agreement after 01/01/2017, then in the event of a delay in repaying the microloan amount or paying interest on this loan, the microfinance organization has the right to charge you a forfeit (fines, penalties), or other measures of responsibility for unpaid part of the principal debt under the loan agreement. In addition, the MFI may continue to accrue interest on the outstanding part of the principal amount until the total amount of interest reaches twice the amount of the outstanding part of the loan in accordance with Art. 12.1 of Law N 151-FZ.
The essential terms of the loan agreement include, in particular, the interest rate on the loan. Its size and procedure for determining, including depending on changes in the conditions provided for in the loan agreement, are usually established by the lending bank by agreement with the borrower (clause 1 of article 819 of the Civil Code of the Russian Federation; part 1 of article 29, part 2 Art.30 of the Law of 02.12.1990 N 395-1; clause 4 of part 9 of Art.5 of the Law of 21.12.2013 N 353-FZ).
In this article, we will consider the limitation of the interest rate under the consumer loan agreement. Note that the above applies equally to interest on consumer loan agreements, except for the provisions that are specifically mentioned in the material.
Consumer loan interest rate
The interest rate under the consumer loan agreement is determined using one of the rates (part 1 of article 9 of Law N 353-FZ):
- fixed rate;
- variable rate, the value of which varies depending on the change in the contractual variable amount.
Under a loan agreement concluded with a borrower-citizen, the lender, as a rule, cannot unilaterally shorten the term of this agreement, increase the amount of interest or change the procedure for determining them. In terms of consumer loans, the bank is only entitled to unilaterally reduce the constant interest rate (part 4 of article 29 of Law N 395-1; part 16 of article 5 of Law N 353-FZ).
A consumer loan agreement, which provides for the obligatory conclusion of an insurance agreement by the borrower, may contain a condition on the right of the lender, if the borrower fails to fulfill this obligation for more than 30 calendar days, to make a decision to increase the interest rate on the loan. In such circumstances, the increase in the rate is limited by the level of the rate at the time of the conclusion of the agreement under similar loan agreements, but without the mandatory conclusion of the insurance agreement, as well as the rate at the time the lender decides to increase its size (part 11 of article 7 of Law N 353-FZ).
Limiting the value of the consumer loan rate
The legislation establishes a limitation on the full cost of a consumer loan (hereinafter - CPC), which affects the size of the interest rate on it. So, at the time of the conclusion of the agreement, the PSK cannot exceed by more than 1/3 its average market value, calculated by the Bank of Russia for the corresponding calendar quarter. In the event of a significant change in market conditions, the Bank of Russia may establish the period during which this restriction is inapplicable (part 11 of article 6 of Law N 353-FZ).
Note. The Bank of Russia on a quarterly basis calculates the average market QI value as a weighted average value for at least one hundred largest creditors for a certain category of credit or for at least 1/3 of the total number of creditors providing a certain category of credit (h. 10 art. 6 of Law N 353-FZ).
The average market value of the CPM is published by the Bank of Russia on a quarterly basis. Thus, under consumer loan agreements concluded in the second quarter of 2017 by credit institutions for the purchase of cars with mileage from 0 to 1,000 km (with a car pledge), this value is 15.768%, and the maximum value of the PSK is 21.024% (part 8 Article 6 of Law No. 353-FZ; Information of the Bank of Russia "On the average market values \u200b\u200bof the full cost of a consumer loan (loan)").
Interest rate under a microloan agreement concluded with a microfinance organization
Let us note the peculiarity in relation to interest on microloans provided not by a bank, but by a microfinance organization (hereinafter - MFO).
If a short-term (up to a year) consumer microloan agreement is concluded with an MFO from 01.01.2017, the amount of interest on it is limited to three times the amount of the loan. Under agreements concluded in the period from March 29, 2016 to December 31, 2016, such a prohibition is in effect if the amount of accrued interest and other payments under the agreement (except for forfeit and fees for additional services) is four times the amount of the loan (clause 9, part 1 Art.12 of the Law of 02.07.2010 N 151-FZ; part 7 of Art.22 of the Law of 03.07.2016 N 230-FZ;
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