When does my savings account earn interest?

So you’ve done your research, you know what a savings account is, how it works, and you’ve picked out an account that suits your needs. By now you’re probably eager to set some money aside and start saving, and earn great interest in the process. But when should you expect to see this interest show up in your account?

When your account earns interest depends on the savings account you’ve chosen, as they all tend to earn interest in slightly different ways, and at slightly different times. A Success Saver account, for example, calculates interest on the minimum daily balance, and then pays out on the final business day of each month. A Term Deposit investment, on the other hand, usually sees interest paid either monthly, quarterly, or once it has reached maturity, depending on the terms you’ve chosen.

Why does it matter when my account earns interest?

Most savings accounts pay ‘compound interest’, which means you earn interest on the interest you’ve already earned. If that’s a bit of a tongue twister, think of it this way:

The amount you earn in interest over a given time period - in this case, a month - is added to your account on a monthly basis, and it’s this new balance - not the original amount - that is used to calculate the interest you earn the following month.

In this way, a savings account that pays out more frequently will, over time, see you making more than one that pays less often. Even if both accounts share the same rate.

Not sure when your account earns interest? Check our list below

Success Saver

Are you serious about your savings? A NZCU Baywide, so are we. Our Success Saver account puts your money to work with compound interest and competitive rates that reward you for saving.

How the Success Saver account earns and pays interest:

  • Interest is calculated on the minimum daily balance.
  • Interest is paid on the last business day of each month

Online Saver

Our CANSTAR 5 Star Rated Online Saver account is one of New Zealand’s best savings accounts. If it’s great rates, easy access, and flexibility you’re after, then our Online Saver account could be for you.

How the Online Saver account earns and pays interest:

  • Interest is calculated on the minimum daily balance.
  • Interest is paid on the last business day of each month.

Retirement Saver

The retirement age is on the rise, so now more than ever Kiwis need to turn their eyes to the future and consider how they’re going to save for their retirement. Offering competitive rates and access to your funds whenever you need them, NZCU Baywide’s Retirement Saver account rewards careful savers.

How the Retirement Saver account earns and pays interest:

  • Interest is calculated on the minimum daily balance.
  • Interest is paid on the last business day of each month.
  • Bonus interest of 0.5% is paid in December if there have been no withdrawals made during the preceding 12 months.

Goal Saver

Saving for a new set of wheels? A home? A dream wedding? No matter what you’re saving for, our Goal Saver account helps you achieve your savings goals. We even help you stay focussed by letting you personalise the name of the account.

How the Goal Saver account earns and pays interest:

  • Interest is calculated on the minimum daily balance.
  • Interest is paid on the last business day of each month.

Loyalty Saver

At NZCU Baywide we reward our loyal members with the Loyalty Saver account, which allows you to use your savings as security to help you achieve a lower rate on your personal loan. The more you save? The lower your loan rate.

How the Loyalty Saver account earns and pays interest:

  • Interest is calculated on the minimum daily balance.
  • Interest is paid on the last business day of each month.

Christmas Saver

Christmas is stressful enough, what with the food, friends and family, so why waste it worrying about money? Our Christmas Saver account takes the stress out of Christmas spending and lets you put money aside throughout the year so you’re ready to roll when the holidays come around.

How the Christmas Saver account earns and pays interest:

  • Interest is calculated on the minimum daily balance.
  • Interest is paid on the last business day of each month.

Jimmy J Junior Saver

A savings account is like a financial rite of passage for most Kiwi kids. With our Jimmy J Junior Saver account you can ensure your kids’ or grandkids’ first steps in their financial life are good ones.

How the Jimmy J Junior Saver account earns and pays interest:

  • Interest is calculated on the minimum daily balance.
  • Interest is paid on the last business day of each month.