Question

When a bank says their savings account earns 1% interest, that typically means you will earn 1% interest over what period of

time (Note: this is not referring to the compounding frequency or frequency of interest payment)?

Answer 1

one year

Step-by-step explanation:

The interest rate quoted by banks and other financial institutions applies for one year. Money deposited will earn the interest rate quoted if it stays with the bank for twelve consecutive months. In other words, the interest rate is for one year. Should a customer withdraw before one year is over, the bank will prorate the interest earned.