What Is the Significance of Imputed Interest?

Interest is the fee for the use of money in a certain period of time, and refers to the remuneration received by the money holder (creditor) from the borrower (debtor) for lending money or monetary capital. Includes interest on deposits, interest on loans, and interest on various bonds. Under the capitalist system, the source of interest is the surplus value created by hiring workers. The essence of interest is a special form of conversion of surplus value and a part of profit. ^[1]

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1. due to

Marx's Political Economy Perspective

Marxism believes that interest is essentially a part of profit

Every enterprise must borrow from the bank in the process of production and operation.

Interest is used as the price of funds in the market

The amount of interest depends on three factors: principal, deposit period and

1. Cancellation or reduction of interest tax

current

The form of interest is very clear, and its surface effect is easy to understand. But just like the price, why is it a specific value and not another value? It is this question of how to decide that makes people wonder.

on

The People's Bank of China has decided to reduce the benchmark interest rate for Renminbi loans and deposits of financial institutions from November 22, 2014. The benchmark one-year loan interest rate of financial institutions was reduced by 0.4 percentage points to 5.6%; the benchmark one-year deposit interest rate was reduced by 0.25 percentage points to 2.75%. At the same time, in combination with the promotion of interest rate marketization reform, the upper limit of the financial institution's deposit interest rate floating range was changed from the deposit benchmark The 1.1 times interest rate was adjusted to 1.2 times; the benchmark interest rates for other grades of loans and deposits were adjusted accordingly, and the benchmark grades were appropriately reduced. ^[7]

1. Cancellation or reduction

Interest (year) = principal × annual interest rate (percentage) × deposit period

Or interest = principal × interest rate × time

Deposit interest = principal × days × listed interest (daily interest rate) = interest accrual days × daily interest rate

Interest tax = deposit interest (income tax payable) × applicable tax rate

How housewives save money to earn bank interest ^[3]

Xiao Xu, who lives in the provincial capital, has been married to her husband for 3 years, and became a full-time housewife at home. Before implementing her birth plan, she decided to save a child's parenting funds. After making up for a wealth of financial management knowledge, she decided to adopt a "profit-making profit" saving method.

Although the deposit interest rate is not high now, the interest rate on time deposits is obviously higher than that on demand deposits. As long as you choose the right savings method, you can also get good returns.
Take 500,000 yuan of funds as an example, you can regularly earn 18,000 yuan of interest in one year, which is equivalent to an increase of 1,500 yuan in monthly income. For ordinary families, it is not a small amount of income.

How do housewives save money and earn bank interest?

Method: "Benefit from the profit" method. Xiao Xu, who runs the bank to benefit from his family life, has been married to her husband for 3 years. After working for two years, the "family love" has become increasingly strong. Become a full-time housewife. Before implementing her birth plan, she decided to save a child's parenting funds. After making up for a wealth of financial management knowledge, she decided to adopt a "profit-making profit" saving method. "My choice is to deposit and withdraw interest. If you want to maximize the effect of regular savings and interest generation, you have to combine it with zero deposit and take it together to produce the effect of" profit and profit "."

Xiao Xu's method is to: first deposit fixed funds in the form of principal and interest, and then save monthly interest in the form of zero deposits and rounds to obtain secondary interest.

Xiao Xu calculated for the reporter, her husband earns an average of about 15,000 yuan per month, 4,000 yuan per month, and the remaining 11,000 yuan. Xiao Xu considers saving it as a principal and interest deposit (assuming a discount of A). After one month, take out the first month of interest on the principal and interest savings, and then use this interest to open a zero deposit full withdrawal savings account ( Assume a B fold). After that, take out the interest from A fold and deposit B fold every month. In this way, not only the deposit and withdrawal of interest received interest, but also these interest received interest after participating in the zero deposit and the whole deposit. Two interest points are obtained for one sum of money, which is the so-called "interest-bearing interest" method of saving.

Xiao Xu believes that although there is not much interest, as long as it is persisted for a long time, it will bring rich returns. And under the current income situation of the family, she made every penny in the family fully function. "I'm a pretty good housewife!" Xiao Xu was proud.

Expert opinion: The financial planner of Taiyuan Branch of Minsheng Bank believes that this saving method achieves the maximization of interest. The disadvantage is that it is more troublesome and it is necessary to run the bank frequently. He suggested that Xiaoxu might try the "automatic transfer of interest" business launched by various banks. After handling this business, the bank will "automatically transfer interest" according to the prior agreement, and the interest of A discount will be automatically transferred to B Discount, eliminating the hassle of running bank access every month. ^[8]