Savings Interest

Interest on your savings is the result of making your money work for you. Everyone knows that the more interest you get on your savings the better off you'll be in the long run. Savings interest can take several forms. Interest on your term deposit is usually calculated monthly and paid at the end of the term. This interest is one of the highest, though fees may apply.

Savings interest that is calculated daily and added monthly is the best because it means you get paid interest this month on last month's interest. The power of compounding interest often has to be seen to be believed. Even if your savings balance is not very large today, if you leave it alone it will increase gradually until one day it will suddenly start to increase dramatically.

Once that happens you will see that the sacrifices you made today to start savings were well worthwhile. In fact, ten years down the track you'll have quite forgotten that outfit you didn't get, or the other few things you went without. And if you do remember them, they won't seem nearly as important as they once did compared with the fact that your savings interest is now a very large sum indeed.

Mel C writes about a variety of subjects including savings accounts, savings interest and high interest savings accounts