No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Wednesday, October 1, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Money

How does interest work in a savings account?

by TheAdviserMagazine
3 weeks ago
in Money
Reading Time: 4 mins read
A A
How does interest work in a savings account?
Share on FacebookShare on TwitterShare on LInkedIn


When you hold money in a savings account, interest is money you receive for lending those funds to the financial institution. The interest is calculated daily and paid out monthly. The interest rate, usually shown as a percentage, is how much interest you get per year. A higher interest rate means your money grows faster.

Here’s an example. If you have $10,000 in a savings account with a 3.1% annual interest rate, over the course of one year, you’ll earn $314 in interest. That’s a pretty sweet return, and with no effort on your end. The longer the money is in your account, the more interest it earns. That’s why it’s so powerful to start saving early.

How banks set interest rates

Financial institutions such as banks and fintechs set account interest rates using the Bank of Canada’s policy interest rate as a guide. That’s why their rates can change over time: when the central bank raises or lowers its policy rate, financial institutions adjust their rates shortly after.

You’ll notice, though, that account providers offer different interest rates, some more competitive than others. Also, many banks have rules and restrictions on who can qualify for their best interest rate. Some advertise an attractive “up to X%” interest rate on savings accounts, but the fine print often includes conditions, such as a minimum required balance to get the best rate. Plus, some accounts charge monthly fees, which could eat into the interest you earn.

That’s why it’s important to shop around and compare different accounts, including their fees and features.

sponsored

PC Money Account

GO TO SITE

Monthly fee: $0

Transactions: Free, unlimited transactions

Regular interest rate on balance: 3.10%

Welcome offer: None at this time.

PC Financial logo

GO TO SITE

Finding the best rate

Have you ever seen a high interest rate advertised “for a limited time”? These teaser rates are exciting, but they only last for a few months, and then the interest drops sharply. Plus, you may have to jump through a few hoops—such as moving bill payments and direct deposits—just to unlock a higher rate.

Customers are getting wise to these blink-and-you-miss-’em rates, though. According to the PC Financial survey, 70% of Canadians feel frustrated when promo rates disappear, and over half say they don’t trust banks to offer fair, transparent savings products.

That’s why it’s smart to read the fine print and look beyond the flashy rates and focus on the account’s everyday interest rate, along with reviewing the fees and conditions.

Article Continues Below Advertisement

Outstream Pause Icon

Outstream Volume Icon

Skip Ad

X

Growing your money with compound interest

Opening an account with a great interest rate and no monthly fees is the first step. Smart savers know it’s possible to grow their money even more. That’s where compound interest comes in. Compound interest is when you start earning interest not just on your original deposit, but also on the interest you’ve earned. It’s like a snowball getting bigger and faster as it rolls. The longer you save, the more powerful compound growth becomes—especially if you regularly add to your savings. Here’s how a $10,000 account balance could grow if the account holder deposits an additional $100 per month and the interest is compounded monthly.

As you can see, combining compound interest with regular deposits accelerates savings growth—helping you reach your financial goals faster.

A better way to earn: The PC Money Account

So where can you find an account with no catches? The PC Money Account from PC Financial is an all-in-one account with features designed for saving.

The PC Money Account is where you can get that competitive 3.1% everyday interest rate on your savings balance. That’s the current regular rate, not a short-term promo rate.

The account is just straightforward savings without surprises: no monthly fee to eat away at your balance; no minimum balance required to get the highest rate; and no time commitment, so you get the best rate while still having access to your money whenever you need.

It’s also the only bank account in Canada that rewards your spending with PC Optimum points. On top of the 100,000 bonus PC Optimum points you’ll receive for signing up, you’ll rack up points when you make everyday purchases with your PC Money Account, no matter where you shop. That means your oat-milk latte, new pickleball paddle, or grocery run can all turn into rewards. You can redeem your PC Optimum points towards groceries and essentials at Loblaw banner stores like Real Canadian Superstore, No Frills, and Shoppers Drug Mart.

Start saving money and earning points today

Whether you’re saving for a beach vacation, a home renovation or a special event like a wedding, the PC Money Account can help you reach your goal faster. Just transfer funds from your spending balance to your savings feature, and your money starts growing—earning interest with no strings attached from day one. It’s a flexible way to earn $700-plus per year in value, once you add up the interest and rewards. Thanks to these and other benefits, the PC Money Account is currently MoneySense’s pick for best rewards bank account.

Get more details about the PC Money Account. (Conditions apply; value shown is for illustrative purposes. Conditions apply to all benefits.)



Source link

Tags: AccountinterestSavingswork
ShareTweetShare
Previous Post

How Solutions Group Accounting Firm Cut 5 Payment Tools

Next Post

Bosses admit they’re using return-to-office mandates to trim down teams—without needing to announce layoffs

Related Posts

edit post
Financial Habits That Create Wealth

Financial Habits That Create Wealth

by TheAdviserMagazine
September 30, 2025
0

  My mission is to share my unique Rich Habits research in order to add value to your life and help you...

edit post
The Social Security Fairness Act—Who Wins and Who Loses If It Passes?

The Social Security Fairness Act—Who Wins and Who Loses If It Passes?

by TheAdviserMagazine
September 30, 2025
0

Image Source: 123rf.com Congress is once again debating the Social Security Fairness Act (H.R. 82), a proposal that would repeal...

edit post
5 Things Behind The Rising Prices of Streaming Services

5 Things Behind The Rising Prices of Streaming Services

by TheAdviserMagazine
September 30, 2025
0

Image Source: 123rf.com Not long ago, streaming promised cheaper, ad-free entertainment compared to cable. But today, prices are climbing fast—sometimes...

edit post
The Top 5 Fast-Growing Industries for Hybrid Jobs

The Top 5 Fast-Growing Industries for Hybrid Jobs

by TheAdviserMagazine
September 30, 2025
0

insta_photos / Shutterstock.comGood news for job seekers: Hybrid careers are on the rise in key areas. To help you pinpoint...

edit post
Why retirement planners are getting defensive

Why retirement planners are getting defensive

by TheAdviserMagazine
September 30, 2025
0

Of course, those with guaranteed-for-life, taxpayer-backed, defined benefit pension plans may well be in an enviable position. I often wonder...

edit post
A Beginner’s Guide to Filing a Personal Injury Claim After a DUI Accident

A Beginner’s Guide to Filing a Personal Injury Claim After a DUI Accident

by TheAdviserMagazine
September 30, 2025
0

September 30, 2025 By admin If you or a loved one has been a victim of a DUI accident, yes,...

Next Post
edit post
Bosses admit they’re using return-to-office mandates to trim down teams—without needing to announce layoffs

Bosses admit they're using return-to-office mandates to trim down teams—without needing to announce layoffs

edit post
Ethereum Treasury Firm SharpLink Starts .5B Share Buyback

Ethereum Treasury Firm SharpLink Starts $1.5B Share Buyback

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Who Needs a Trust Instead of a Will in North Carolina?

Who Needs a Trust Instead of a Will in North Carolina?

September 1, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

‘Quiet luxury’ is coming for the housing market, The Corcoran Group CEO says. It’s not just the Hamptons, Aspen, and Miami anymore

September 9, 2025
edit post
We’re not in an ‘AI winter’—but here’s how to survive a cold snap

We’re not in an ‘AI winter’—but here’s how to survive a cold snap

0
edit post
The Real Jan. 6th Coup

The Real Jan. 6th Coup

0
edit post
XRP Price Jumps As Bloomberg Says XRP ETF Approval Certain

XRP Price Jumps As Bloomberg Says XRP ETF Approval Certain

0
edit post
The Social Security Fairness Act—Who Wins and Who Loses If It Passes?

The Social Security Fairness Act—Who Wins and Who Loses If It Passes?

0
edit post
Odds of a government shutdown rise to 70% in prediction markets

Odds of a government shutdown rise to 70% in prediction markets

0
edit post
Israeli tactical satcom co Commcrete raises m

Israeli tactical satcom co Commcrete raises $29m

0
edit post
We’re not in an ‘AI winter’—but here’s how to survive a cold snap

We’re not in an ‘AI winter’—but here’s how to survive a cold snap

October 1, 2025
edit post
Sunny Agrawal flags overpriced unlisted stocks amid IPO frenzy

Sunny Agrawal flags overpriced unlisted stocks amid IPO frenzy

October 1, 2025
edit post
Stablecoin Crackdown: European Central Bank Gathers Backing For Joint Issuance Ban

Stablecoin Crackdown: European Central Bank Gathers Backing For Joint Issuance Ban

September 30, 2025
edit post
Gold hovers near record high on US shutdown concerns, Fed rate outlook

Gold hovers near record high on US shutdown concerns, Fed rate outlook

September 30, 2025
edit post
Britain Vs Florida | Armstrong Economics

Britain Vs Florida | Armstrong Economics

September 30, 2025
edit post
Judge denies Merrill TRO request with 9B breakaway

Judge denies Merrill TRO request with $129B breakaway

September 30, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • We’re not in an ‘AI winter’—but here’s how to survive a cold snap
  • Sunny Agrawal flags overpriced unlisted stocks amid IPO frenzy
  • Stablecoin Crackdown: European Central Bank Gathers Backing For Joint Issuance Ban
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.