# 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 – fixed and floating interest rate and a combination thereof

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 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 other hand, the floating interest rate reacts as quickly to negative reference interest rate trends.

Combinations of fixed and floating interest rates at OP include tiered and layered interest rates. A tiered interest rate includes interest steps, each with its own fixed or floating interest rate. Higher interest steps have a higher interest rate than lower steps. The amount of savings in your account determines the level of interest paid on your savings. Therefore, you will always get the interest rate of the step you have achieved on the entire deposit amount in the account. For example, the interest rate of a Growth Return Account is tiered.

With a layered interest rate, interest is paid on your savings according to the interest step that they have reached. Smaller savings belong to the first interest step, whereas larger savings reach higher steps. This means that if your savings reach the third interest step, interest will be paid according to three different rates in line with the interest steps. The interest rate of an interest step may therefore be fixed or floating, and even in this case the interest rate increases with higher interest steps. For example, the interest rate of a Savings Account is layered.

Both the tiered and layered interest rate will encourage you to save more as you will receive a higher total rate of interest when your savings reach a new interest step or layer.

## 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 **Savings Account**, the higher the interest rate. The account has three interest steps, and interest is paid on your savings according to each step. This means that if your savings reach the third interest step, interest will be paid according to three different rates. In the first step, the interest rate for the savings is fixed. In the second and third steps, the interest rates are tied to the 3-month Euribor reference rate minus the bank’s margin.

The Savings Account is flexible and ideal for various types of saving. You can save at your own pace and withdraw money from the account whenever you like, without any withdrawal limits or charges. The Savings Account is free of monthly charges, like other savings accounts offered by OP.

Learn more and open a Savings Account

Like a Savings Account, the interest rate of a **Growth Return Account **is determined according to the amount of funds you have saved in the account and the interest step that your savings have reached. In the first interest step, the interest rate is fixed, and in the second and third steps, the interest rate increases and is tied to a 3-month Euribor minus the bank’s margin. However, the interest rate of a Growth Return Account differs significantly to that of a Savings Account: More interest is paid for the entire sum deposited in a Growth Return Account when your savings reach a new interest step. With a Savings Account, only the savings that reach the highest step will earn a higher interest rate.

A Growth Return Account is best suited for long-term saving and storing funds in an account. When the need arises, you can withdraw money from the account 4 times a year, free of charge. The Growth Return Account also acts as a joint savings account, and you can grant account access rights to another person.

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.