How interest on bank financial products is calculated

Usually, the return on financial products is calculated based on the rate of return of the financial product, the capital invested and the actual number of days of financial management. The general formula for financial products is financial income = invested funds × daily interest rate × actual number of days of financial management. Among them, the interest rate can be divided into annual interest rate, monthly interest rate and daily interest rate, which should be converted appropriately when calculating the financial income. Of course, this formula is generally applicable to fixed-income financial products, for some more complex financial products also need to take into account other risk factors. The above is an introduction to the calculation of financial products, it should be noted that the bank financial products are calculated according to 360 days a year, while other Internet financial products are still calculated according to 365 days. In addition, for the yield of financial products should also distinguish the difference between the yield to maturity and the annualized yield.