What is the balance interest?
Posted: Wed Feb 19, 2025 5:14 am
Among banking services, there are many that allow you to receive passive income. You can open a deposit, apply for a card with cashback or accruals on the balance. In this article, we will tell you how the interest on the balance (IOB) works, how to calculate it, what are its features and advantages.
What is the balance interest?
PNO is an incentive for the client not to withdraw money from the account and keep it in the bank. For those who do not spend their entire salary, this is the easiest way to earn income. You do not change your habits, and additional money appears on its own. Usually these are small amounts, but it is still nice.
Interest is not accrued on any balance. You need to understand the conditions under which this service works in order to receive maximum income.
How is interest calculated on the balance?
First, it is necessary to define basic terms:
We will tell you what these concepts mean czech republic mobile database and what the PNO may depend on.
Calculation scheme
Calculation methods vary, but usually one of three schemes is used:
For the minimum balance amount. Let's say you had 80,000 ₽ on your card at the beginning of the month, in the middle the amount decreased to 35,000 ₽, then your salary came, and at the end of the month you already have 90,000 ₽. The income will only be from 35,000 ₽, since this is the minimum amount you kept on the card during the month.
On the average balance. This scheme is more complicated and is used less often. The system takes into account how much money was left on the card each day and calculates the average value.
On the daily balance. If in the previous points the interest is calculated once, then in this case it is calculated daily. You can receive income every day, but most often it happens once a month. The scheme is rarely used.
Each bank chooses its own scheme, but in general there is a tendency on the market to charge interest on the minimum amount per month. This is convenient for banks and understandable for clients.
Irreducible balance
Almost every bank introduces a minimum balance from which interest begins to accumulate. This amount is specified in the contract and does not change. Let's look at examples of how the minimum balance works with different accrual schemes. For convenience, we will take the same minimum amount of 40,000 ₽.
What is the balance interest?
PNO is an incentive for the client not to withdraw money from the account and keep it in the bank. For those who do not spend their entire salary, this is the easiest way to earn income. You do not change your habits, and additional money appears on its own. Usually these are small amounts, but it is still nice.
Interest is not accrued on any balance. You need to understand the conditions under which this service works in order to receive maximum income.
How is interest calculated on the balance?
First, it is necessary to define basic terms:
We will tell you what these concepts mean czech republic mobile database and what the PNO may depend on.
Calculation scheme
Calculation methods vary, but usually one of three schemes is used:
For the minimum balance amount. Let's say you had 80,000 ₽ on your card at the beginning of the month, in the middle the amount decreased to 35,000 ₽, then your salary came, and at the end of the month you already have 90,000 ₽. The income will only be from 35,000 ₽, since this is the minimum amount you kept on the card during the month.
On the average balance. This scheme is more complicated and is used less often. The system takes into account how much money was left on the card each day and calculates the average value.
On the daily balance. If in the previous points the interest is calculated once, then in this case it is calculated daily. You can receive income every day, but most often it happens once a month. The scheme is rarely used.
Each bank chooses its own scheme, but in general there is a tendency on the market to charge interest on the minimum amount per month. This is convenient for banks and understandable for clients.
Irreducible balance
Almost every bank introduces a minimum balance from which interest begins to accumulate. This amount is specified in the contract and does not change. Let's look at examples of how the minimum balance works with different accrual schemes. For convenience, we will take the same minimum amount of 40,000 ₽.