please ACTUALLY explain this like im 5 i genuinely cannot grasp this concept whatsoever. i’m opening a savings account and it says;
“The interest rate depends on your account balance. All rates are variable. 4.25% p.a. on balances less than $50,000. 4.25% p.a. on balances between $50,000 – $249,999.”
am i paying for my own savings account???? what??????? i am so confused i feel like im going crazy
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When you put money in a savings account, the bank will pay you some money called interest. It is measured as a percentage of however much money you have in the account. The “p.a.” after the percentage means that the percentage is over a year. So if the bank is offering 4.5% p.a. interest, and you put $100,000 in a savings account, then in a year’s time you will have an extra 4.5% ($4500) in your account.
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