| Total savings | |
| Total monthly contributions | |
| Interest earned |
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The money in your savings account benefits from compound interest to help it grow. This means you will earn interest on your interest.
For example, let's say you had a balance of $100,000 in your account with a savings interest rate of 5.00% p.a. The 5.00% p.a. rate will be applied to your balance which results in $5000 interest. However, this is an annual rate, while savings accounts pay interest monthly. So, dividing the annual amount of interest earned by 12 leaves you with $416.66 in interest for the first month.
Now, let's pretend that you don't add any more money into the account other than your initial $100,000 deposit. Going into month 2 you now have a balance of $100,416.66. When calculating your interest for the month, the rate is applied to your whole balance (including the interest payment!). This time, your monthly interest payment is $418.40 - slightly more than in month 1.
This continues month on month, and as you're earning more interest each month, your balance is getting bigger. Because your balance is getting bigger, you're earning even more interest.
Compound interest allows you to grow your money without even depositing anything extra. However, by making regular additional deposits yourself you'll also be increasing the amount of interest you earn each month.
Motivated to start saving? Take a look at the current rates on offer.
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Looking for a high interest savings account.
Hi Adrian,
Thank you for getting in touch with Finder.
You may compare high-interest savings accounts using our comparison table. Once you’ve chosen a provider, you may click the “Go to site” button to be redirected to the bank’s official website to get more details or start your application.
Please make sure though to read the eligibility criteria, features, and details of the account, as well as the relevant PDS/ T&Cs of the account before making a decision and consider whether the product is right for you.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
What is my credit score ?
Hi Elizbeth,
Thanks for leaving a question on Finder.
You may refer to our step-by-step guide to getting your free credit score with Finder.
Please send me a message if you need anything else. :)
Cheers,
Joel
My wife invested 0n 08.05.2002 the sum of $A600,000 in a term deposit for 90 days with the
interest of 4.13%.She died shortly after, before the expiry of first maturity period.
The money remained with the Bank until now. What is the value of the investment now?
I need your answer to claim the money from the Australian Bank.
Your answer will be appreciated.
Sever
Hi Sever,
Thank you for your inquiry.
Our company finder.com.au is a financial comparison website and general information service designed to help consumers to make a better decision. Please note we do not represent any company we feature on our pages.
With regards to this matter, it would be nice if you can coordinate this directly with the bank. As they have the specific access to your wife’s account. This way, they can further check the information for you and provide the current status of the account.
I hope this information has helped.
Cheers,
Harold
History of Banks term Deposit Interest Rate since 1992?
Hi JimP,
Thank you for your inquiry.
I’m afraid we don’t have that data as of this time. However, what you can do is compare term deposit accounts and once you’re done comparing, you can then get in touch directly with your chosen bank and ask them directly for a historical interest rates record.
I hope this information has helped.
Cheers,
Harold