How do you calulate interest on a savings account.?

Answer 1

Well it depends upon the bank's policy,but the basic calculation is:

Interest = Principal * Interest Rate * Time

Answer 2

You need to check with the bank on how often they calculate the interest. For example, if the annual rate is 6% compounded monthly, you would divide 6/12 giving .5% each month. This would actually work out to more than 6%. Sometimes they refer to this calculated amount as APY.

Answer 3

Your bank may have supplied you with a number called APR, which is the annual periodic rate. To estimate interest earnings in a specific month, divide your APR by 12 months then multiply by the average daily balance in your account. If you want to be really specific your average daily balance is the sum total of your balance each day of the month, divided by the number of days in that month. I would advise you estimate, unless like me, you enjoy crunching numbers for the heck of it.

Answer 4

lets say your interest is 6%. per day. and you have 100 in your acc, you would find out what your making for the day, times that per month. its usally compounded annually.