Savings Interest Calculator
Supports simple interest and compound interest (annual) — enter the principal, annual rate and term to get the interest earned and total at maturity.
About This Tool
Interest reflects the time value of money. Understanding the difference between simple and compound interest helps you plan your deposits more effectively.
Simple interest means interest is not added back to the principal for further earning. The formula is: Interest = Principal × Annual Rate × Years. For example, 100,000 CNY deposited for 3 years at an annual rate of 2.5% earns simple interest of 100000 × 2.5% × 3 = 7,500 CNY. Ordinary time deposits at Chinese banks are mostly calculated with simple interest.
Compound interest (calculated annually in this tool) means each year's interest is added to the principal for the next year — "interest on interest". The formula is: Total at Maturity = Principal × (1 + Annual Rate)^Years. The same 100,000 CNY at 2.5% compounded annually for 3 years totals about 107,689 CNY — roughly 189 CNY more than simple interest. The longer the term, the greater the compound advantage.
In real deposits, note that a bank's posted rate may differ from the rate actually applied; early withdrawal of a time deposit usually earns the demand-deposit rate; and some wealth-management products are net-value based with no guaranteed return. Results from this tool are for reference only.
How to Use
- Choose an interest type: Simple Interest (ordinary time deposit) or Compound (Annually).
- Enter the principal (CNY), the annual rate (%) and the term (years).
- Click "Calculate Interest" to see the interest earned and the total at maturity.
FAQ
How big is the difference between simple and compound interest?
The longer the term and the higher the rate, the bigger the difference. Take 100,000 CNY at 3%: over 10 years, simple interest earns 30,000 CNY while compound interest totals about 134,392 CNY (34,392 CNY of interest) — roughly 4,392 CNY more.
Do bank time deposits use simple or compound interest?
Ordinary time deposits at Chinese banks pay simple interest if held to maturity. If the deposit auto-renews at maturity (rolling principal plus interest into a new term), that effectively creates annual compounding by hand.
Where can I find the annual rate?
Check the posted deposit rates on each bank's official website or ask at the counter. The actually applied rate may be higher depending on region, amount or promotions — your bank's final terms prevail.
How is interest calculated on early withdrawal of a time deposit?
The entire term is usually recalculated at the demand-deposit rate of the withdrawal date, which is far lower than the time-deposit rate. Choose your term based on when you will need the funds, or split your money into several deposits with different maturities.
Does the result include interest tax?
Interest on personal savings deposits is currently exempt from individual income tax in China, so the calculated result is the interest you receive. If policies change, follow the latest regulations.