When and how often do you receive interest?

If you currently save with ABN AMRO or are planning on doing so, you would probably like to know which kind of interest you earn. The amount of interest you receive and how often depends on the type of savings account you have.

Fixed or variable?

The interest that the bank pays out is expressed as a percentage. For a term deposit, the rate is the same throughout the term; this is called a fixed interest rate. For other savings accounts, the rate is variable, meaning that it can change.

 

Once a year or once a quarter?

  • For most savings accounts, interest is paid out once a quarter or once a year, depending on the type of savings account you have. The terms and conditions of your savings account explain which kind of interest you receive. 
  • For a Spaardeposito (Savings Deposit), we pay out interest once a year. If you have a minimum deposit of € 5,000, you can opt for monthly interest payments.
 

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 four 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%