When and how often do you get interest on your savings?
You’re saving for the future, so it’s nice to know how much interest you’ll earn. Interest is a percentage and it can be earned at a fixed or a variable rate. The date that your interest is paid depends on the type of savings account you have.
Variable or fixed-rate interest
If you have a savings account, the interest rate can change as you save. This is called a variable interest rate. If you have a fixed-rate deposit account, you put money aside for a fixed period and the interest rate remains the same throughout the term. This is called fixed-rate interest. You cannot withdraw your money during the agreed term.
Interest per year or per quarter
Your interest is paid per year or quarter on most savings accounts. Check out the terms, conditions and key features online. The interest on fixed-rate deposit accounts is always paid out annually.
When will you receive the interest?
- Annual interest: on the first working day of the new calendar year with an interest date of 31 December of the previous year.
- Quarterly interest: on the second working day of the new calendar quarter with an interest date of the last day of the previous month.
Find out more about annual interest
If you have a savings account that pays out interest once a year, you’ll see the nominal interest in your account overview. This is the interest you earn over the period that your money is in the account until the next interest pay-out.
A sample calculation: you have a savings account offering 1.50% interest. This remains the same throughout the year. The balance on 31 December is €5,000. On 25 May, you get your holiday allowance and deposit €2,000 in your savings account. On 15 August, you go on holiday and withdraw €1,000 of your savings. The interest is calculated as follows:
| Period | Your interest |
|---|---|
| 31 December to 24 May | 1.50% of €5,000 x 145/365 days = €29.79 |
| 25 May to 14 August | 1.50% of €7,000 x 82/365 days = €23.59 |
| 15 August to 30 December | 1.50% of €6,000 x 138/365 days = €34.03 |
| ---------- | |
| Totale interest | €87.41 |
Find out more about interest per quarter
Interest on savings accounts is paid out four times a year. This interest is calculated according to the number of days that the money is in your account per quarter. If you leave the interest in your account, it too will earn interest. So if you leave your savings in your account for a whole year, you’ll earn interest on interest. This is known as the effective annual interest: the interest rate you receive if you leave your money in the account for a whole year.
A sample calculation: you have a savings account with a (nominal) interest rate of 1.294%. If you leave your savings and the quarterly interest in the account for a whole year, the effective annual interest will be 1.30%.
| Quarterly nominal interest rate | Effective annual interest rate |
|---|---|
| 1.294% | 1.30% |
| 1.095% | 1.10% |
| 0.20% | 0.20% |
Interest paid out once a year
For savings accounts that pay out interest once a year, we state the nominal interest rate. This is the interest that you earn for the entire period, in this case a whole year.
Sample calculation
For example, on 31 December, the balance in your savings account was € 5,000. You received € 2,000 in holiday pay that you put in your savings account on 25 May. On 15 August, you went on holiday and withdrew € 1,000 from the account. The savings rate in this sample calculation is 1.50% and does not change during the year. The interest is calculated as follows:
| Period | Your interest |
|---|---|
| 31 December to 24 May | 1.50% of € 5,000 x 145/365 days = € 29.79 |
| 25 May to 14 August | 1.50% of € 7,000 x 82/365 days = € 23.59 |
| 15 August to 30 December | 1.50% of € 6,000 x 138/365 days = € 34.03 |
| Total savings interest | € 87.41 |
Interest paid out once a quarter
For savings accounts that pay out interest once a quarter, you receive interest 4 times a year. Your savings earn interest for the number of days in a quarter that the money is in your savings account. If you leave the interest in your account, you will also earn interest on this amount in the next quarter, i.e. you earn interest on the interest. The interest rate that tells you what the interest will be if you leave your savings in your account for a full year is called the 'effective interest rate'.
Sample calculation
For example, your savings account pays out a nominal interest rate of 1.294% every quarter. If you leave your savings in your account for a full year, the effective interest rate will be 1.30%.
Example
| Nominal interest rate (once a quarter) | Effective interest rate per year |
|---|---|
| 1.294% | 1.30% |
| 1.095% | 1.10% |
| 0.20% | 0.20% |