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Interest calculator — calculate interest amountTable of contents
Bank interest depends on the rate, deposit period and capitalization frequency. Here’s how to calculate it and compare offers safely.
Capitalization adds interest to the principal. More frequent capitalization usually increases the final result.
Use simple interest and then account for capitalization. The bank interest calculator gives a quick estimate.
Deposit interest is usually taxed and banks often withhold the tax automatically, so clients receive the net amount.
Compare effective rates after capitalization and the net result after tax.
Renewable deposits may have different rates in the next period, while progressive deposits change over time. Treat each period separately.
A nominal rate is not the whole picture. With higher inflation, the real return can be lower, so compare the real value after the deposit ends.
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