Deposit interest rate on an account
How is the interest rate on an account determined, and what is the best deposit interest rate? Learn the basics about interest rates of accounts.Deposit interest enables return on your savings
A deposit interest on an account is the rate of return paid to you for the time you have had money in your account. In another words, OP cooperative bank pays you compensation for depositing and keeping your money in OP cooperative bank’s accounts. This makes having a savings account an easy and profitable way to save.
The deposit interest is expressed as a percentage rate according to which the money in your account gives return in a year. For example, if you deposit 1,000 euros into an account with a fixed annual interest rate of 2% at the start of the year and the savings on the account do not change during the year, the return paid to the account after a year will be 20 euros.
The deposit interest rate on an account is always based on market conditions, so the interest rate of an account might change if the market conditions change. The interest rate on an account might also be 0%, which means that there will be no interest yield.
Determination of the interest rate – a fixed, floating and tiered interest rate
Accounts for OP’s personal customers can have a fixed or floating interest rate, or a combination of these two. A fixed interest rate means that interest is paid on deposited funds based on a fixed interest rate. A floating interest rate, on the other hand, varies over time as it is tied to a reference interest rate, for example, and reflects its changes.
If you want to have steady returns on your savings, an account with a fixed interest rate might be a better option than an account with a floating interest rate. The floating interest rate reacts to increases in the reference interest rate, which means that you will get a higher interest rate in accordance with the reference rate. On the flip side, the floating interest rate reacts as quickly to negative reference interest rate trends.
The deposit interest rate on an account can also be a tiered one, which means that it will consist of various interest steps where each step will have a separate interest rate. You can achieve the next interest step by saving more in the account, because the interest steps are based on the savings in the account. You will always get the interest rate of the step you have achieved on the entire deposit amount in the account. In this way, the tiered interest rate encourages you to save more, because you will get a higher interest rate when you reach the next interest step with your savings.
Interest rate calculation method also influences the interest yield
The interest yield paid to your account is influenced by whether the interest rate is calculated separately for each day, or whether it is based on the average deposit or the minimum balance for each month. The account balance means the amount of savings in the account.
You can get a better interest rate for an account when the interest is calculated based on the daily balance or the average deposit, because this method responds better to the fluctuation in the value of your savings.
Which account has the best deposit interest rate?
OP cooperative bank’s interest rates of accounts are determined in various ways. In addition, the accounts have other differences that have an effect on which account best suits your needs. Generally speaking, the Current Account is suitable for everyday banking, while savings should be transferred to a savings account.
The more you save in the Growth Return Account, the higher the interest rate. The interest rate is based on three interest steps. In the first step, the interest rate is fixed, and in the second and third steps, the interest rate increases and is tied to 3-month Euribor. You can reach a higher interest step if you save more in the account.
The Growth Return Account is a flexible savings account for continuous long-term saving. You can save at your own pace and use the savings in the account if needed.
Find out more and open a Growth Return Account
The Fixed-term High-yield Account gives you a fixed deposit interest rate on the savings you deposit into the account for a fixed term. The interest rate on your deposit remains the same throughout the selected deposit period. You can see the interest rate before opening the account. When the deposit period ends, your savings and the interest yield will be available to you.
The Fixed-term High-yield Account is suitable for short-term saving for up to one year. If you have savings you do not need for a certain period, the Fixed-term High-yield Account might be a great option for you.
Learn more and open a Fixed-term High-yield Account
For the Current Account, the interest will be paid to OP cooperative bank owner-customers who have the account and owner-customer membership with the same OP cooperative bank.
However, the Current Account cannot be recommended for saving larger amounts, as savings accounts can offer better interest on your money. The account is thus suitable for everyday banking, such as paying invoices.