On February 22, 1995, after seeking instructions from Director Xie, the Business Division decided to convene a meeting for all Tellers of the bank. The agenda of the meeting was to arrange the nationwide agricultural bank's "March 14th Savings Promotion Day" event, and the meeting would last for the entire day.
To ensure the smooth progress of the meeting, I meticulously prepared Director Xie's speech in advance. In the morning, Director Xie delivered an opening speech at the meeting.
He first emphasized the significant meaning of the "March 14th Savings Promotion Day." He pointed out that this event not only helps to enhance the bank's visibility and image but also promotes the development of savings business. Afterward, Director Xie elaborated on the specific activities that each branch should carry out.
He specifically mentioned that spring is a crucial period for capital recovery, and March falls within the peak period of rural capital flow before spring plowing. By organizing promotional activities, idle social funds can be effectively absorbed, injecting new vitality into the bank's savings business. This not only aligns with the national financial policy of "vigorously organizing deposits and supporting agricultural production" but also provides more convenient financial services for the vast number of farmers.
To further enhance the visibility and influence of Zhuzhou Rural Bank, we plan to implement a series of powerful measures during the promotion day event. As a sub-branch, we will collaborate with Zhuzhou Television Station, conducting promotions through on-demand dramas to attract more audience attention.
Concurrently, each branch needs to develop specific promotional plans. Firstly, we will set up promotional booths in township areas, where professional personnel will explain savings policies to residents, allowing them to better understand our products and services.
Secondly, for clients with large deposit amounts, we will launch preferential interest rate activities within the branches and offer exquisite gifts to attract more capital inflow.
In addition, we will write eye-catching promotional slogans on the walls of main intersections in towns and streets, ensuring that passing pedestrians see our advertising information.
Finally, we will hang savings promotion banners outside the branches to further expand the promotional scope.
Through these extensive and in-depth savings promotion activities, we are confident that we will achieve better results in Zhuzhou Rural Bank's first-quarter savings deposit work and reach a new level.
In the afternoon, under the bright sunshine, in the meeting room of the sub-branch's Business Division, a lecture on savings interest calculation was about to begin. This lecture was to be given by me, with the aim of helping all Tellers better master the knowledge related to savings interest calculation and improve their professional skills.
Director Xie chose me to give this lecture because he noticed my outstanding performance in interest calculation, and I had also frequently published several articles on interest calculation in prefectural and county-level bank journals recently. Considering the actual situation of Tellers in the sub-branch's outlets regarding interest calculation, Director Xie specifically utilized the time of this meeting to arrange this lecture on savings interest calculation.
I felt deeply honored by this opportunity to showcase my abilities, and at the same time, I felt immense pressure. To ensure the quality and effectiveness of the lecture, I systematically summarized the previous articles I had published and, specifically for the lecture's theme, wrote a teaching plan for savings interest calculation titled "Savings Interest Calculation Techniques."
The entire lecture will be divided into three main parts:
Section 1 will cover the explanation of basic savings knowledge. I will detail the concept, types, characteristics of savings, and related policies and regulations, providing everyone with a comprehensive and clear understanding of savings.
(1) Interest calculation includes three elements: principal, term, and interest rate. The calculation formula is: Interest = Principal x Term x Interest Rate
(2) General regulations for savings interest calculation
1. Various savings deposits are calculated in yuan as the unit of interest. Jiao and Fen below the yuan are not counted as interest.
2. Interest calculation should be carried out to the cent level. When actually paid, the cent level will be rounded to the fen level. When calculating interest in segments, sum them up first, then multiply by the principal and round the cent level.
3. Calculation of deposit term. For calculating interest on demand savings and fixed-term lump-sum savings, the actual deposit term can be converted into days. The calculation of deposit days uses the method of counting the first day but not the last day, meaning interest accrues from the day of deposit until the day before withdrawal. The maturity date of fixed-term savings is calculated according to the year, month, and day. If the account opening date is missing from the maturity date, the last day of the maturity month shall be the maturity date. For example, a deposit due on the 31st withdrawn on the 30th is considered due. Regardless of whether the month is large, small, normal, or leap, each month is calculated as 30 days, and the year is calculated as 360 days.
4. Current interest rates are all annual rates. For convenience in actual work, the annual interest rate can be converted using the following methods: Annual Rate ÷ 12 = Monthly Rate; Monthly Rate ÷ 30 = Daily Rate.
Section 2 will explain the methods for calculating savings interest.
This will be divided into two situations: first, deposits made before the implementation of the "Savings Management Regulations," and second, deposits made after the implementation of the "Savings Management Regulations."
(1) For fixed-term RMB savings deposits made before the implementation of the "Regulations," if the interest rate is adjusted within the original deposit term, the method of calculating interest in segments based on the higher rate still applies.
(2) For fixed-term RMB savings deposits made after the implementation of the "Regulations."
1. If the interest rate is adjusted within the original deposit term, regardless of whether the rate increases or decreases, interest will be calculated at the rate specified on the account opening date stated on the deposit slip, without segmented calculation.
2. For full or partial early withdrawals, interest will be calculated at the current demand savings deposit rate posted on the day of withdrawal.
3. For overdue withdrawals, the overdue portion will be calculated at the demand savings deposit rate posted on the day of withdrawal.
(3) According to the People's Bank of China's document Yin Fa [1993] No. 85, "Notice on Adjusting Deposit and Loan Interest Rates and Implementing Savings Deposit Indexation," for personal fixed-term lump-sum savings deposits of over one year that were deposited in banks before the interest rate adjustment from March 1, 1993, to July 11, 1993, interest will be calculated from the account opening date to the interest rate adjustment date of July 11 at the posted demand deposit annual interest rate of 3.15%. From the interest rate adjustment date to the original deposit maturity date, interest will be calculated at the original deposit term rate adjusted on July 11.
Section 3 will explain savings interest calculation techniques.
1. Hundred Yuan Base Method: This refers to the interest calculated on a principal of one hundred yuan. Interest = Principal x Term x Interest Rate
Interest on a hundred yuan principal = Number of days x Daily rate x 100
In fact, after the implementation of the "Regulations," since interest is not calculated in segments, the calculation is much simpler, with the following three types:
(1) Maturity type formula: Interest on a hundred yuan principal = Number of months x Monthly interest rate x 100 or = Number of years x Annual interest rate x 100
(2) Early withdrawal type: Formula for interest on a hundred yuan principal = Number of days x Demand daily interest rate x 100
(3) Overdue type: Formula for interest on a hundred yuan principal = (Number of months to maturity x Monthly interest rate + Number of overdue days x Demand daily interest rate) x 100
Or = (Number of years to maturity x Annual interest rate + Number of overdue days x Demand daily interest rate) x 100
2. Hundred Yuan Base Comparison Method: This is a method for calculating interest competitions by pre-calculating a fixed base to increase calculation speed. This method involves pre-calculating the hundred yuan base for each tier and interest rate for a full year, then comparing the time period to be calculated with it, adding or subtracting the difference in base units. The formula is:
Hundred Yuan Interest Base = Corresponding full-year hundred yuan base ± Base for intervening period
During the lecture, I distributed the Hundred Yuan Base Table that I compiled and provided examples of the application of the Hundred Yuan Base Comparison Method for different scenarios.
3. Memorize Common Bases
In summary, in addition to the fixed full-year tier bases mentioned above, there are also bases for intervening periods. In fact, the base for intervening periods is the basis for calculating the current demand savings interest rate. Therefore, we not only need to remember the full-year tier bases mentioned above but also the daily, monthly, and annual bases for demand savings for 1-30 days, 1-12 months, and 1-6 years. I have also compiled corresponding base tables and distributed the Hundred Yuan Base Table I compiled at the venue. After memorizing these base tables, there is no need to calculate the deposit term and daily base; they can be directly applied.
IV. Use of Broken-Head Multiplication.Habitual operations in multiplication include retention multiplication, empty plate multiplication, and broken-head multiplication. Relatively speaking, broken-head multiplication is faster and more scientific in interest calculation. This is because when calculating interest, you first derive the hundred yuan base, place it on the abacus, and then multiply by the principal.
V. Correct Positioning Method. Manual interest calculation positioning can be done according to multiplication principles and then positioning, but this method is time-consuming. Here, a positioning method is introduced with a mnemonic: Ten-digit principal is in its original position, hundred-digit principal retreats one position, and thousand-digit principal retreats two positions. This means that when using broken-head multiplication, if the principal is a ten-digit number, the resulting product's units digit (interest) will be the units digit of the original hundred yuan base; if it is a hundred-digit number, the resulting product's units digit (interest) will be one position back from the units digit of the original hundred yuan base; if it is a thousand-digit number, the resulting product's units digit (interest) will be two positions back from the units digit of the original hundred yuan base. And so on.
VI. Several Common Speedy Multiplication Methods. To calculate interest quickly, mastering speedy multiplication methods is also crucial. Especially in the process of multiplying by the principal after obtaining the hundred yuan base, the speed of multiplication directly affects the speed of interest calculation. During the lecture, I introduced several common speedy multiplication methods: such as tail addition multiplication, head addition multiplication, retreat addition multiplication, and subtraction multiplication.
After the lecture, to put what was learned into practice, I specifically prepared a set of twenty interest calculation problems in the savings interest calculation teaching plan. Everyone used the base tables I distributed on-site to take the test, with a time limit of thirty minutes. The response was enthusiastic, with most Tellers completing the test within the allocated time. To encourage excellence, the sub-branch provided special rewards to the top three Tellers in terms of performance.