Most savings accounts and some checking accounts feature an interest rate that lets account owners accrue revenue by letting money sit in the bank. This is usually called the annual percentage rate (APR), and it most often accrues interest on a daily basis according to a preset percentage that you can expect your money to increase by each year. While banks are not legally required to explain to you how the interest rates are calculated, it's not hard to figure out on your own.
Step 1
Find the total account balance after interest has been earned. This will occur at the end of the rate term, which is most often a year or month.
Step 2
Split your total account balance into two numbers: the total amount previously held in your account, and the amount of interest added into the account by the bank.
Step 3
Divide the total amount before interest was added by the interest added. The resulting figure is your interest rate.
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