A savings account is a bank account into which you deposit money you intend to save.
In return for depositing your savings in your account, the bank pays you interest (if the interest rate is positive).
There are two types of savings accounts:
Regulated savings accounts
Non-regulated savings accounts
The interest rate on a savings account depends on various factors, such as:
Monetary policy
Interest rates are often influenced by the monetary policy implemented by the European Central Bank
The country's economic performance
A country's economic performance can also influence interest rates. If the economy is growing, interest rates tend to rise as demand for credit also increases.
Banks' commercial policies
Banks can set interest rates on savings accounts according to their commercial objectives. They may decide to increase their interest rates to match the competition or to make their offer more attractive to new and existing customers
"}},{"componentType":"sectionTitle","title":"How is interest calculated on a regulated savings account?"},{"componentType":"paragraph","richBody":{"value":"The interest on a regulated savings account is made up of basic interest and a loyalty bonus.
Calculation of basic interest
Basic interest is calculated every day starting the day after the money is deposited and then for the entire period during which the money remains in the account. It is paid out once a year, on 1 January.
The bank calculates the basic interest on a daily basis and pays you the basic interest in one go.
Let's say that on 30 June you invested €10,000 in your savings account at an interest rate of 0.40%. On the following January 1, you will receive interest for the period from 1 July to 31 December, i.e. for half a year. You then receive half the return of 0.40% per annum: EUR 20.
Calculation of the loyalty bonus
The loyalty bonus is earned on amounts that have remained continuously in the regulated savings account for 12 months following the deposit. Its rate is guaranteed for a period of 12 months from the time the initial payment is made.
The loyalty bonus is paid quarterly, on 1 April, 1 July, 1 October and 1 January, provided that the amount has remained in the account for 12 consecutive months.
Let's take an example: you deposit 10,000 euros on 1 October in a savings account with a basic interest rate of 0.40% per annum and a loyalty bonus of 0.50%. |
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