How the interest works | Rates Explained: Savings

Savings rates are shown as a yearly rate. A 2% rate on $10,000 earns about $200 over a year, if your balance stays the same.

Most banks work out your interest every day, on how much is in your account at the end of the day. Then they pay it into your account once a month¹.

A quick example

$10,000 at 2% a year:

Each day: $10,000 × 0.02 ÷ 365 = about $0.55.
Each month: about $16.67.
Each year: about $200, a bit more once the monthly interest starts earning interest too.

Because interest is worked out every day, money you add starts earning right away, and money you take out stops earning right away.

Remember. Savings rates can change at any time, unlike a GIC's.

Try your numbers. Enter your balance and rate. The rate starts at today's highest advertised regular savings rate.