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Not all deposits gain interest. Deposits to a savings account in a bank usually earn interest. Security deposits sometimes earn interest depending on where you reside. Deposits into investments will earn interest and the rate depends on the state of the economy and the financial markets.

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12y ago

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Related Questions

How do banks make money when it pays interest on deposits?

They charge a much higher interest on loans than they pay on deposits.


How do you calculate cost of deposit of banks?

cost of deposits= Interest paid on Deposits/Total deposits


What is the interest rate for term deposits?

It depends on the tenure. * For deposits that are less than one year the rate of interest is around 6-7% * For deposits that are one year or more the rate of Interest is around 8% * For special deposits that are 5 year tenure, the rate of interest is around 9% Add an extra 0.5% extra for senior citizens.


Do banks uaually offer bank cds?

Yes, most banks do offer CD's or, Certificates of Deposits. Generally Certificates of Deposits are time deposits, a certain denomination of money that you take a deposit on and that accrues interest until it is 'mature' at which time you can usually extend it, or withdraw it with the interest added. You can usually withdraw your money early but if you do, you will forfeit all or much of your interest.


Do demand deposits earn interest?

Yes


What are noninterest-bearing deposits?

Noninterest-bearing deposits are funds held in a bank account that do not earn any interest for the depositor. These deposits typically include funds in checking accounts and some types of demand deposit accounts. Unlike interest-bearing deposits, noninterest-bearing deposits do not generate any additional income for the depositor.


Do Colorado security deposits have to earn interest?

yes, but it depends.


What is the bank customer shares of the profit made of loans?

Savings account interest and all other forms of interest earned on deposits with a bank is a person's share of the bank's profit made on loans.


How can banks afford to pay interest n their customers savings account deposits?

Because they're loaning the money in those deposits at double or more the interest rates that they're paying the depositors.


How does a bank make most of its profit on its business?

By paying out less in interest on deposits than it earns in interest on loans


How does a bank make most of its profits on its business?

By paying out less in interest on deposits than it earns in interest on loans


Are most deposits fixed rate or variable rate?

Deposits offer only a fixed rate of interest. Though this rate of interest gets changed once in a while, a deposit which was opened before this interest rate change does not get altered. It will continue to earn the same rate of interest as was promised when the deposit was opened.