Question

Why does the value of money in a savings account increase overtime

Answer 1

the bank pays you interest

Explanation:

The bank is paying you to keep your money and their storage because they give their money to other people so for that they give you like a cent or more a month based on how much money you put in annually

Answer 2

Because it earns interest

Explanation:

We save money in the financial institutions like banks and micro-finance institutions. This money increase is known as interest. So the money you save increase in value over the time because it earns interest.