The effective rate is higher because you earn interest on the interest that is reinvested in your fixed deposit account. On high-yield savings accounts with a minimum opening deposit of 25,000, the highest rate offered today is 4.89.
The nominal rate is when the interest from your fixed deposit account is paid out every month, and not reinvested. The effective rate is higher because you earn interest on the interest that is reinvested in your fixed deposit account.įixed-term savings plan (multiple deposits option) Term (Months) The nominal rate is when the interest from your fixed deposit account is paid out every month, and not reinvested. All interest rates quoted are nominal annual compounded monthly (NACM) rates.įixed-term savings plan (single deposit option) Term (Months) Some savings accounts offer short term introductory interest while others reward regular saving with ongoing bonus interest.
