How to calculate the interest of social security personal account?

The calculation formula of this interest is: the accumulated amount of accounts at the end of this year = the accumulated amount of personal accounts at the end of last year ×( 1+ the bookkeeping interest rate of that year)+the allocated amount of this year+the interest of allocated amount of this year.

In the calculation formula of social security personal account interest, the accumulated deposit in the account by the end of this year is composed of several parts, including the accumulated deposit in the personal account at the end of last year, the amount allocated in that year and the interest of these two parts. This formula takes into account the time value of funds, multiplies the bookkeeping interest rate of the current year by the accumulated storage amount by the end of last year, and calculates the accumulated interest from the end of last year to the present.

The amount allocated in that year also enjoys the same bookkeeping interest rate, reflecting the time value of funds. This formula can more accurately reflect the actual growth of individual account funds.