What determines interest rates on deposits? How to calculate interest payments Interest rate in brokerage companies

In addition to the supply and demand for money and the actions of the central bank, there are a number of other factors that influence interest rates on specific instruments. These factors include:

• solvency of the borrower - the likelihood that the borrower will not be able to repay the principal amount of the loan and pay interest on it
• borrowing term – depending on economic prospects and supply and demand factors, the interest rate on a loan with one term may differ from the rate on a loan with another term
• the size of the principal amount of the loan - a large loan is more difficult to repay than a small one; however, the lender may be able to offer an attractive interest rate on a large loan as a result of economies of scale

Most loans require a certain security deposit to cover the risk of default by the borrower, that is, the credit risk of the loan. Governments, or more specifically central banks, are considered the most solvent borrowers in a country, as they are lenders of last resort.

Minor Factors

1. Demand for money and its supply

The higher the demand for money, the higher the interest rate. High interest rates discourage borrowers and thereby reduce economic activity in the country. Low interest rates, on the contrary, stimulate borrowers and contribute to the growth of economic activity.

2. Government actions

The government can influence the interest rate through the central bank. A reduction in the amount of money in circulation in a country leads to an increase in interest rates and, therefore, a decrease in economic activity. An increase in the amount of money in circulation lowers the interest rate and increases economic activity.

3. Inflation

Lenders expect to receive compensation for the loan issued. This compensation is the interest rate charged for the use of funds. The interest rate must be higher than the inflation rate, otherwise the interest on the loan will not compensate for the loss in the value of money.

4. Deflation

Deflation is the reverse of inflation

Consequences of changes in interest rates

The consequences of changes in interest rates are different and affect the financial and real sectors of the economy.

Changes in the interest rate affect demand in the money market: when the rate rises, demand decreases, and when it decreases, it increases.

Since the supply of money does not automatically lead to a change in the rate, the equilibrium in the market is disturbed: when the rate increases, there is an excess of money (threatening inflation), and when the rate decreases, there is a shortage of money (threatening deflation).

Under these circumstances, there is a need for government control over the movement of interest rates. The interest rate is an object of government regulation, and the interest rate policy of the Central Bank of the country is an important tool of monetary regulation. Therefore, the interest rate established by the Central Bank based on a study of the state of the money market is a barometer and guideline for determining interest rates for all types of operations in the money market.

The interest rate specified in the loan agreement is one of the most significant terms of the loan; it is on the basis of this figure that the borrower decides to borrow money from the bank or not. In most cases, the bank, after studying the borrower’s package of documents and conducting credit scoring in one form or another, sets the interest rate, including depending on the lending conditions stipulated in the agreement between the parties to the agreement (bank and individual). In this article we will take a closer look at what is the maximum interest rate on a loan that can be set by a credit institution when applying for a consumer loan (from a bank) and when concluding a microloan agreement at an MFO.

Issues discussed in the material:

The procedure for drawing up a loan agreement and assigning interest on a loan is regulated by a number of legislative acts, in particular this is Part 1 of Art. 29, part 2 art. 30 of the Federal Law of December 2, 1990 N 395-1 “On Banks and Banking Activities”, Art. 819 of the Civil Code of the Russian Federation and clause 4 of part 9 of art. 5 of the Federal Law of December 21, 2013 N 353-FZ “On consumer credit (loan)”:

Interest rates on loans and (or) the procedure for determining them, including determining the interest rate on a loan depending on changes in the conditions provided for in the loan agreement, interest rates on deposits and commission fees on transactions are established by the credit institution by agreement with clients, unless otherwise provided by federal law.

Let's take a closer look at the restrictions regarding the interest rate under a consumer loan agreement. Our material applies equally to interest rates on credit agreements for both non-purpose purposes and consumer credit agreements.

Interest rate on a consumer loan at a bank

If we refer to Part 1 of Art. 9 of Law No. 353-FZ “On Consumer Credit (Loan)”, it stipulates that the determination of the interest rate under a consumer loan agreement is carried out by the bank using one of the rates:

• Fixed rate;
• Variable This occurs depending on changes in the variable value specified in the loan agreement.

Banks, in most cases, under a loan agreement concluded with a borrower who is an individual, do not have the right to independently reduce the term of the agreement, change the procedure for determining interest on the loan and their amount. In the case of consumer lending, the bank can unilaterally only reduce the interest rate on the loan (if we are talking about structuring the debt of an individual, for example) in accordance with Part 4 of Article 29 of Law No. 395-1; Part 16 of Article 5 of Law No. 353-FZ.

Some banks include in the loan agreement a requirement to take out life and health insurance for the borrower, or insurance of property that serves as collateral for the loan, while the agreement may stipulate that the lender has the right to decide to increase the interest rate on the loan provided, including if the consumer fails to fulfill his insurance obligations for more than 30 calendar days.

However, the amount of increase in the interest rate on an already issued loan in the event of a subsequent one is also specified in the loan agreement and the maximum interest rate will be limited to the amount specified in the loan agreement when issuing the loan, in accordance with Part 11 of Article 7 of Law No. 353-FZ.

Maximum interest rate on loan

Talking about what is the maximum interest rate on a loan that can be set by a credit institution, Attention should be paid to the fact that at the legislative level there is a limitation on the total cost of a consumer loan (FCC), which has a direct impact on the interest rate on it.

By law, a bank cannot draw up a loan agreement in which the interest rate is more than 30% higher than the market average (calculated quarterly by the Bank of Russia). If some significant change in market conditions occurs in the country, the Central Bank may establish one or another period during which the limitation on the maximum rate on consumer loans will not be applied (Part 11, Article 6 of Law No. 353-FZ).

On a note! Once a quarter, the Bank of Russia calculates the average market value of the PSK as a weighted average of at least 100 of the largest banks of the Russian Federation for a certain category of loan or for at least one third of the total number of credit institutions that provide a certain category of loan (Part 10 of Art. 6 of Law No. 353-FZ).

The Bank of Russia publishes the average market value of the PSK once a quarter (according to Part 8 of Article 6 of Law No. 353-FZ). For example, for car loans that were concluded in the 2nd quarter of 2019 for the purchase of new vehicles (mileage from 0 to 1000 km), this average market interest rate is 15.768%, and the maximum value of the PSK is 21.024% per annum, provided that the car is in as collateral (Information from the Bank of Russia “On average market values ​​of the full cost of a consumer loan (loan)”).

Maximum interest rate on microloans in microfinance organizations

It’s worth noting right away that the maximum interest rate on microloans in microfinance organizations is very different from interest on loans from regular banks. from January 1, 2017, they can establish a maximum interest rate on short-term loans (up to a year) not exceeding 300%, that is, the overpayment on a microloan should not be three times more than the amount of this microloan. See paragraph 9, part 1, art. 12 of the Law of July 2, 2010 No. 151-FZ:

...to accrue interest to an individual borrower under a consumer loan agreement, the repayment period of the consumer loan for which does not exceed one year, with the exception of penalties (fines, penalties) and payments for services provided to the borrower for a fee, if the amount accrued under the agreement interest will reach three times the loan amount. 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;

This maximum amount of overpayment on a loan does not include costs for additional services and penalties/fines (Federal Law dated July 2, 2010 N 151-FZ “On microfinance activities and microfinance organizations”).

If we talk about consumer loan agreements that MFOs concluded in the second quarter of 2019, then the average market value of the FSC (the full cost of a consumer loan) for a microloan without collateral (with the exception of POS microloans), in the amount of up to 30,000 rubles and for a period of 30 days inclusive, is equal to 599.367% per annum. In this case, the maximum PSC is 799.156% per annum.

Bank interest is nothing more than a fee for using borrowed funds. In civil circulation, the most famous cases of using interest are fees and deposit fees. In both cases, there are two entities in the relationship, one of which is always a banking institution, which, based on certain economic calculation methods, determines the amount of bank interest for a specific type of transaction.

Types of bank interest

In banking practice, there are several types of interest:

• loan (credit),
• deposit,
• discount,
• accounting

Loan interest is the amount that is charged to the borrower for using loan funds. Deposit interest is essentially the same as loan interest, but the borrower in this case is a banking institution that pays you a fee in the form of this same deposit interest for the use of your money.

The 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 receive an amount greater than this 10%, accrued during the year. If you need to calculate how much it will cost per month or per day, simply divide the interest rate by the time period you need. To find out how much you will receive per month, you need to divide 10% by 12 (the number of months in a year). And to calculate the interest per day, you will need to divide the interest rate by 365 (the number of days in a year).

Simple and complex bank interest

Bank interest can be calculated in two ways, called simple and compound interest. In the first case, it is understood that the loan (deposit) amount is always taken as the basis for calculations during the term of the agreement. Compound interest takes into account that in each subsequent period the amount on which 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 more profitable. The situation with loans is the opposite. Interest is considered beneficial if it is calculated not on the entire loan amount, but on the balance of funds not returned to the bank.

Bank interest rate calculation

Before signing a loan agreement, it is advisable to understand what amounts you will have to pay, so the correct calculation of the bank interest rate is important. Many online banks offer the borrower a calculator for these calculations on their websites, but in reality it is not so easy to use, 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 proposed in the list, you can calculate the approximate percentage that will have to be paid for borrowed funds:

1. loan interest;
2. all bank fees (for processing an application, opening, servicing an account, etc.);
3. all life insurance and other services;

To make the correct calculation, you should take into account various circumstances that may arise when using borrowed money, for example, early repayment, penalties, fines and much more.

Some bank clients, on the contrary, entrust their finances to a credit institution for safekeeping. The bank pays interest for this, its size depends on many factors.

Interest rate in brokerage companies

A brokerage company is an intermediary between the seller and the buyer. If previously only banks were engaged in savings operations, now similar services in other institutions are becoming increasingly popular. The client's assets in the brokerage office may 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 it.

Interest rates at brokerage companies change frequently, so they are calculated daily and deposited at the end of the month. Brokers offer different interest rates. If the 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%). A high percentage is important for strategic investors, since deals are rarely concluded (Commission - 0.03%, SWAP - 0 pip, Interest rate - 6%.). The client is required to make at least one transaction in order for the interest rate in brokerage companies to begin to be credited to the deposit.

When lending, there are several features of bank interest

The borrower pays an interest rate to the credit institution; today, when lending, there are several features of bank interest:

1. loan (receipt of profit by the bank from the client for the use of money);
2. deposit (paid by the bank to the client for the opportunity to use his money);
3. discount rate (the Central Bank rate at which loans are issued to other banks);
4. discount (% for risks associated with issuing a loan).

Each of them is intended for specific functions: savings, regulatory and redistribution. The calculation of a bank's interest rate is influenced by many different factors.

What determines the amount of bank interest?

Currently, there is a single formula for calculating the interest rate on a deposit account. It is necessary to understand what the size of the bank interest depends on and take into account that various factors can adjust it:

M = D * (1 + r/100* t/360).

M - the amount received by the client at the end of the investment period;

D - deposit amount;

r - bank interest rate;

t is the number of days for which the client entrusts his finances to the bank.

In the financial world, it is believed that each month has 30 days.

Example: deposit 100,000 rubles in the 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 only suitable for interest on which is calculated once a year. If interest on the deposit is credited several times a year, for example, every month, then you will have to calculate interest using a complex banking formula:

M = 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; it is quite difficult to distinguish between them. In the process of operation, an enterprise faces various problems. In specialized literature, types of banking risks are grouped by financial transactions:

1. banking risk (this includes risks associated with the activities of the bank and general ones, depending on external influences);
2. credit risk (arises due to overdue debts of clients or enterprises receiving loans from the bank);
3. currency risk (associated with changes in exchange rates);
4. interest rate risk (fluctuations in interest rates force the bank to pay increased interest for using money or receive less income from loans provided);

There are risks in any enterprise, so it is important for a bank not to avoid them, but to anticipate them and, as a result, reduce the threat to a minimum.

The interest rate specified in the loan agreement is its essential condition. In most cases, the credit institution, after agreement with the borrower, establishes the procedure for determining the loan rate and its size, including depending on the changing conditions provided for in the agreement between the parties to the transaction. This point is stated in clause 1 of Article 819 of the Civil Code of the Russian Federation; Part 1 Art. 29, part 2 art. 30 of the Law of December 2, 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 a bank has the right to set? and microfinance organizations. We would like to draw your attention to the fact that our material examines the issues of the maximum interest rate specifically for consumer lending (targeted and non-targeted loans to individuals).

How is the interest rate on consumer loans regulated?

If we refer 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 a consumer loan, then the bank unilaterally only has the right to reduce the interest rate on a consumer loan 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.

A consumer loan agreement, which stipulates the mandatory conclusion of an insurance agreement, may contain a condition that the lender has the right to decide to increase the interest rate on the loan provided.

This can happen if the consumer does not fulfill his life insurance obligations (health, job loss, ...) for more than 30 calendar days.

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 after a year the bank can raise the interest rate on the already issued consumer loan.

Please note that if the borrower refused insurance and the bank increased the interest rate on an existing loan, this rate can only be increased by 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, a limitation on the total cost of credit (FLC) has been fixed, which has a direct impact on the interest rate in Russian banks.

By law, in a loan agreement, a bank cannot establish interest rates on a consumer loan that exceed the average market interest rates by more than one third. The calculation of the average market interest rates is carried out by the Central Bank of Russia quarterly.

The Central Bank has the right to lift the limitation on interest rates on loans to banks only if there is a fundamental change in market conditions in the country (according to Part 11 of Article 6 of Law No. 353-FZ).

On a note! Once a quarter, the Bank of Russia calculates the average market value of the PSC as a weighted average value for at least 100 leading banks in the country, both for certain types of credit products, or for no less than for credit products of one third of the total number of credit institutions of 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 PSC 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 value of the full cost of a consumer loan (loan).”

What is the maximum interest rate on a microloan that an MFO can set?

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 a microfinance organization 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 loan amount.

The exception is payments to microfinance organizations for additional services, as well as fines and penalties in case of delays (see Part 9, Part 1, Article 12 of Law No. 151-FZ dated July 2, 2010, and Part 7, Article 22 of Law No. 3, 2016). 230-FZ).

If we talk about consumer loan agreements that MFOs entered into in the second quarter of 2017, the average market value of the PSC for a consumer microloan without collateral (with the exception of POS microloans), in the amount of up to 30,000 rubles and for a period of 30 days inclusive, amounted to 599.367%. Thus, the maximum PSC was 799.156%.

Please note that if you took out a microloan from a microfinance organization under a short-term agreement after 01/01/2017, then in case of delay in repaying the microloan amount or paying interest on this loan, the microfinance organization has the right to charge you a penalty (fines, penalties), or other measures of liability for the outstanding portion of the principal debt under the loan agreement. In addition, the MFO may continue to accrue interest on the outstanding portion of the principal amount until the total interest amount reaches twice the amount of the outstanding portion of the loan in accordance with Art. 12.1 of Law No. 151-FZ.

Microfinance organizations (MFOs) have limited the accrual of interest on microloans.

Limitation of interest on microloans

On January 1, 2017, Articles 12 and 12.1 of the Federal Law “On Microfinance Activities and Microfinance Organizations” dated July 2, 2010 N 151-FZ came into force, which introduces a ban on Microfinance Organizations (MFOs) charging borrowers unreasonably high interest rates on consumer microloans. What is the reason for limiting interest on microloans? The reason is as simple as the world - microfinance organizations (MFOs), in an effort to obtain excess income, issue microloans instantly and with virtually no verification of 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 Federal Law No. 151-FZ dated July 2, 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 on 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 issuance of microloans in the amount of up to 30 - 50 tr. is issued only if you have a passport and, of course, 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 issued consumer microloans, namely:

1. Three-fold limitation on the accrual of interest under a consumer microloan agreement.
2. Stopping the accrual of interest on overdue loans as soon as the interest reaches twice the amount of the outstanding portion 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 limitation on the accrual of interest under a consumer microloan agreement entered into from this date comes into force.

If the repayment period under the agreement does not exceed one year, microfinance organizations (MFOs) do not have the right to charge interest to the individual borrower after the amount reaches three times the loan amount.

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 5,000 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 limitation established on the amount of interest does not apply by law to penalties (fines, penalties), as well as to payments for services provided to it for a fee.

This is how it is stated in the Federal Law of July 2, 2010 N 151-FZ (as amended on July 3, 2016) “On microfinance activities and microfinance organizations” (as amended and supplemented, entered into force on January 1, 2017) :

Article 12. Restrictions on the activities of a microfinance organization (as amended by Federal Law dated December 29, 2015 N 407-FZ)
1. A microfinance organization has no right:
9) accrue interest to an individual borrower under a consumer loan agreement, the repayment period of the consumer loan for which does not exceed one year, with the exception of penalties (fines, penalties) and payments for services provided to the borrower for a fee, if the amount accrued interest agreement will reach three times the loan amount. 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 Federal Law No. 230-FZ dated July 3, 2016)

2. The second restriction concerns late repayment of a short-term (up to one year) consumer microloan: after a delay occurs, 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.

In this case, the MFO will be able to start accruing interest again only after the borrower has partially repaid the loan and (or) paid the interest due.

Penalties (fines, penalties) should be charged only on the portion of the principal debt not repaid by the borrower.

So, for example, if the outstanding portion under an overdue agreement is 5,000 rubles, the amount charged from the borrower will be equal to 15,000 rubles, which includes the amount of overdue debt - 5,000 rubles and accrued interest - 10,000 rubles (5,000 rubles x2).

Each MFO is required to place information about these restrictions on the first page of a short-term consumer loan agreement before the table with the individual terms of the agreement.

Federal Law No. 151-FZ dated July 2, 2010 “On microfinance activities and microfinance organizations” (as amended and supplemented) speaks about this restriction as follows:

Article 12.1. Peculiarities of calculating interest and other payments in case of delay in fulfilling loan obligations (introduced by Federal Law dated July 3, 2016 N 230-FZ)
1. After a delay in fulfilling the obligation of a borrower - an individual to repay the loan amount and (or) pay interest due, a 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 the part of the principal debt that has not been repaid by him. Interest on the portion of the principal amount not repaid by the borrower continues to accrue until the total amount of interest payable reaches an amount equal to twice the amount of the outstanding portion of the loan. A microfinance organization does not have the right to accrue interest for the period of time from the moment the total amount of interest payable reaches an amount equal to twice the amount of the outstanding part of the loan until the borrower partially repays the loan amount and (or) pays the due interest.

2. After there is a delay in fulfilling the obligation of the borrower - an individual to repay the loan amount and (or) pay the due interest, 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 charge the borrower - an individual a penalty (fines, penalties) and other measures of liability only for the portion 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 which does not exceed one year, before the table containing the individual terms of the consumer loan agreement.

Sources:

• Message from the Bank of Russia dated January 1, 2017 - “The accrual of interest on short-term microloans is limited”
• Federal Law of July 2, 2010 N 151-FZ “On microfinance activities and microfinance organizations” (as amended and supplemented)
• Federal Law of July 3, 2016 N 230-FZ “On the protection of the rights and legitimate interests of individuals when carrying out activities to repay overdue debts and on amendments to the Federal Law “On MICROFINANCE ACTIVITIES AND MICROFINANCE ORGANIZATIONS””