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When opening a savings account why you earn a small amount of interest?
Wiki User
∙ 12y ago
Because, the money you keep in your savings account is used by the bank to grant loans to loan customers. Since the bank earns an interest on those loans, they are obliged to share the same with the customers in the form of interest. However, the interest is very less because, the money in your savings account can be withdrawn at any point of time. If the money is put in a fixed deposit which states a maturity date, then banks usually pay a higher interest because, they can plan on how to utilize the money effectively.
Wiki User
∙ 12y ago
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What amount of money in a checking or a savings account upon which interest is based?
The amount of money in a checking or a savings account is the balance. The interest is usually based on the balance.
Which bank in has the highest interest in checking and savings account?
Karnataka bank in india has highest interest in savings account. For the amount kept between 7 to 45days you get 4.5% as interest
What exactly is a high interest savings account?
With a high interest savings account, the saver can get a large return on their savings. At current rates, the interest can range between 3-5%. However a large amount of accounts with higher interest may impose a penalty if you withdraw from that account.
A percentage of the amount in the savings account which is a reward for the bank's use of the money?
interest
The amount of money earned in a year by a savings account is called the?
ANSWER It is called "interest".
What amount of money in a checking or a savings account upon which interest is based?
The amount of money in a checking or a savings account is the balance. The interest is usually based on the balance.
Which bank in has the highest interest in checking and savings account?
Karnataka bank in india has highest interest in savings account. For the amount kept between 7 to 45days you get 4.5% as interest
What is a high interest savings account?
With a high interest savings account, the saver can get a large return on their savings. At current rates, the interest can range between 3-5%. However a large amount of accounts with higher interest may impose a penalty if you withdraw from that account.
What exactly is a high interest savings account?
With a high interest savings account, the saver can get a large return on their savings. At current rates, the interest can range between 3-5%. However a large amount of accounts with higher interest may impose a penalty if you withdraw from that account.
If i deposited 235.00 in 1974 in a savings account what would be my balance?
The amount in your balance would depend on the interest rate of your savings account.
A percentage of the amount in the savings account which is a reward for the bank's use of the money?
interest
The amount of money earned in a year by a savings account is called the?
ANSWER It is called "interest".
Are US citizens taxed on how much they have in their savings account or taxed just on the amount of interest they earn from the savings account?
They are only taxed on the interest. The money in the account should have already had its tax paid as income.
What are high interest savings?
They're accounts that yield higher rate than a regular savings account. There are some minimum requirements to open a high interest savings account, such as maintaining a balance and depositing a minimum amount to open the account.
Can you save money with a high interest savings account?
Yes, a high interest account is a very desirable savings account because you will gain a decent amount of interest on your money. You will gain much more money if you get compound interest by saving more money into the account monthly.
You opened a savings account with the deposited 5000 in a six percent interest rate compounded daily what is the amount in the account after 180 days?
If you opened a savings account and deposited 5000 in a six percent interest rate compounded daily, then the amount in the account after 180 days will be 5148.
What is a CD savings account used for?
A CD savings account is the same as a regular savings account, but for a fixed term such as 6 months or a year or five years. The interest rate on a CD savings account is typically higher than a standard savings account because you are keeping your money in the account until maturity. Once it matures, you can withdraw the amount plus interest accrued.
