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She will earn 24 dollars every year for the 400 dollars she has. This is if she doesn't withdraw the money till end of one year. If she does so in between, the amount can be much lower depending on when actually she took it out.

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13y ago

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What happens to the money that you deposit in a savings account at a bank?

When you deposit money in a savings account at a bank, the bank uses that money to make loans to other customers and earn interest. In return, the bank pays you interest on the money you have deposited in your savings account.


Disadvantages of savings bank account?

Actually there are no disadvantages of having a savings account. Saving money is a good habit and keeping it in a bank account is even better because it will earn you an interest. The only downside is that the interest earned in a savings account is much much lesser than a fixed deposit but nonetheless the money is liquid and you can take it anytime you want, which isn't the case with a fixed deposit.


Do you earn interest on a current account?

No, you typically do not earn interest on a current account.


Can you earn interest from a credit card if you have a positive credit account and does the credit company have to pay you interest for borrowing your money?

You cannon earn interest from a credit card if you have a positive credit account. The bank will simply give you a refund if you have overpaid.


Can a church earn interest on bank account?

Yes, a church can earn interest on its bank account, similar to any other organization or individual. Many banks offer interest-bearing accounts, such as savings accounts or certificates of deposit (CDs), that can provide a return on the funds held by the church. However, the specific terms and conditions, including interest rates, may vary by bank and account type. It's important for the church to choose an account that aligns with its financial needs and goals.

Related Questions

Is the interest earn t in a bank account classed as an investment?

Interest earned in a bank account is not an investment. It is considered an income. The money that you have in the bank account that earned the interest for you is considered the investment


What happens to the money that you deposit in a savings account at a bank?

When you deposit money in a savings account at a bank, the bank uses that money to make loans to other customers and earn interest. In return, the bank pays you interest on the money you have deposited in your savings account.


Disadvantages of savings bank account?

Actually there are no disadvantages of having a savings account. Saving money is a good habit and keeping it in a bank account is even better because it will earn you an interest. The only downside is that the interest earned in a savings account is much much lesser than a fixed deposit but nonetheless the money is liquid and you can take it anytime you want, which isn't the case with a fixed deposit.


What is saving bank account?

A savings bank account is an account that is designed to store savings. You cannot draw money out of it using a debit card or checks, but it pays a higher interest rate than a checking account.


Do you earn interest on a current account?

No, you typically do not earn interest on a current account.


Can you earn interest from a credit card if you have a positive credit account and does the credit company have to pay you interest for borrowing your money?

You cannon earn interest from a credit card if you have a positive credit account. The bank will simply give you a refund if you have overpaid.


How do you earn interest from money in the bank?

You earn an interest by depositing your money with the bank either in your savings account or through a fixed deposit. The bank grants loans to other customers and earns an interest out of it. Since it is your money they are using to give off loans, they share a portion of the profit they earn with you by means of an interest that gets paid out to the deposit customers.


Is there a checking account from Bank of America that will allow me to earn interest while my money is in the bank?

There is an Advantage with Tiered Interest Checking where you can earn up to 0.25% APY. If you have a Bank of America Mortgage, or you keep your average daily balance at $10,000, the account has no monthly fee. Otherwise, a monthly fee applies.


Can a church earn interest on bank account?

Yes, a church can earn interest on its bank account, similar to any other organization or individual. Many banks offer interest-bearing accounts, such as savings accounts or certificates of deposit (CDs), that can provide a return on the funds held by the church. However, the specific terms and conditions, including interest rates, may vary by bank and account type. It's important for the church to choose an account that aligns with its financial needs and goals.


How does money in my account benefit the bank. does it mean the bank is richer?

The money you deposit into your account is an obligation for the bank to be paid to you anytime you want. The bank would lend this money to its other customers and earn an interest income from it.


What is saving bank?

A Savings bank is the most simple and traditional form of bank account. you can deposit cash and withdraw it whenever you want. Since you can withdraw your money anytime, the interest you earn on it is very minimal. Usually banks offer 3.5% to 4% on the minimum balance maintained by you in your account.


Do all deposits gain interest?

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.