How Do Savings Interest Rates Work
Every day you have money in your savings account, it earns a little interest. This is what the bank agrees to pay you in exchange for you giving them your money. When you open your savings account, you should shop around for the highest savings account interest rates. Banks usually pay you your total interest earnings once a month. They add all your earnings to your account at the end of every month. Savings interest rates do change over time, so the amount you earn per month can go up and down.
How to calculate how much you’ll earn
Once you know the interest rate on your savings account, it’s a very easy calculation to figure out how much you’ll earn. Just multiply the amount of money in your savings account by the interest rate and divide the result by 100.