Your sister is looking for a way to increase the amount of interest she is earning on her savings account. What should she do?

Your sister is looking for a way to increase the amount of interest she is earning on her savings account. What should she do?

a. Use the money from her savings account to open a checking account instead

b. Make monthly withdrawals from her savings account

c. Switch to a savings account with a lower interest rate

d. Deposit money into her savings account each month

Answer: d. d. Deposit money into her savings account each month

To ensure that more appreciation is earned on a saving account the best way is to save more and have the money deposited in the saving account more often. Many savings accounts have interest rates that work according to the account balance, meaning that the more money one withdraws into the account, the more interest that will be earned on the amount. In this perspective, it is possible to state that more frequent deposits help build a larger account balance which in turn will generate more interest in account. Meanwhile, actions such as depositing into a checking account (a), making withdrawals (b), or transferring to a lower interest-bearing account (c) would result in either no improvement in the interest earnings or in the worst case scenario, are bound to decrease it. This implies that it is easier to earn more interest provided that a certain figure is deposited into the savings account on a regular basis.