6 Questions to Ask About Your Interest Rate

Before opening a high-yield savings account, it’s important to understand the details of the rate. Different accounts may calculate interest in different ways, and every nuance can affect the growth of your savings.

Consider asking six important questions about your high-yield savings account interest rate.

1.) When is interest calculated?

The frequency of interest calculations depends on your bank and your account. It could be daily, monthly, quarterly, or annually. Frequency matters because the more often interest is calculated, the faster your savings can grow.

For Forbright Bank Growth Savings accounts, interest is calculated daily.

2.) When will you see interest added to your account?

Usually, interest payments are made on a monthly, quarterly or annual basis. Even if your bank calculates interest daily, the interest will typically be added to your account monthly.

With Growth Savings, account holders receive an interest payment each month based on their daily balances throughout the previous month.

3.) Is your interest rate promotional?

Some banks offer a great promotional interest rate that only lasts a few months after opening your account.

Growth Savings’ interest rate is the same for all account holders; there’s not a higher rate for new accounts. While the interest rate may change sometimes, as with any savings account, it does not expire based on how long your account has been open with Forbright Bank.

4.) Must you maintain a certain balance to qualify for the highest interest rate?

Many high-yield savings accounts require a minimum balance to earn interest at the highest levels.

Growth Savings does not require a minimum balance; all account holders earn at the same competitive interest rate.

5.) When will you earn interest on transfers?

Some banks may wait a few days or a week before they start paying interest on a new transfer into your high-yield savings account.

With Growth Savings, you’ll start earning interest on a transfer the day it is received in your account.

6.) How is interest calculated?

There are two types of interest you can earn on money in a savings account:

Because your Annual Percentage Yield (APY) reflects the total amount of interest paid on an account (based on the interest rate and frequency of compounding for a one-year period), your account’s APY is almost always a higher percentage than your actual interest rate. To learn more about how compound interest works to your advantage, check out our Savings Calculator on the Growth Savings page.