DEFINITION of 'Anticipated Interest'

The amount of interest that a savings vehicle will accrue by some future date, assuming there are no deposits or withdrawals during the intervening period. Anticipated interest factors in compound interest. For example, a one-year, $1,000 certificate of deposit with a 2% annual interest rate would have anticipated interest of $20.15. Anticipated interest can also describe to the total amount of interest that is expected to be paid on a loan with a specified payoff date, such as a mortgage or car loan. If the loan is repaid early, the actual interest will be less than the anticipated interest.

BREAKING DOWN 'Anticipated Interest'

An investor putting a lump sum into a high-yield savings account, such as those typically offered by online banks, would have a greater amount of anticipated interest than someone putting the same sum into a traditional savings account, which typically pays a rock-bottom interest rate. Regardless of the savings vehicle, it is important to understand how the bank calculates compound interest (e.g., daily, monthly, semi-annually) to know how much interest you can anticipate.

  1. Anticipated Balance

    The amount that a savings account will have at some future date, ...
  2. Periodic Interest Rate

    The periodic interest rate is the interest rate charged on a ...
  3. Interest Sensitive Liabilities

    Interest sensitive liabilities are types of short-term deposits, ...
  4. Stated Annual Interest Rate

    The return on an investment that is expressed as a per-year percentage, ...
  5. Deposit Interest Rate

    The deposit interest rate is the interest rate paid to deposit ...
  6. Gross Interest

    The annual rate of interest to be paid on an investment, security ...
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