Average interest percentage on savings account?

contentking

What would be considered an average percentage on a savings account? 1%, 2%, 6%?

And would I be correct in saying that if I started with let's say €1,000 and my interest rate is 2%, then at the end of the year I would end up with €1,020 If I didn't save anymore?

noworries

I don't think you could define the average interest rate as there are too
many factors to take into account, e.g term, amount saved, whether
fixed term or variable and of course the instuitution, the DIRT RATE,
frequency of interest payment etc.

A rough guide to interest would be be approx 3 per cent for 1 year money
or about 0.5 percent for demand.

To say that at "2% you would have 1020 in your account at the end of the year" - is not entirely correct - that would be on a simple interest
calculation but banks use at the very least, a compound interest calculation to derive the AER or Annual Equvalent Rate -again depending on the variables outlined above.


but for very rough estimates I would use;

Y/E Balance = Balance + (Balance * InterestRate * 0.73)
In your example;
Y/E Balance = 1000 + (1000 * 2% * 0.73) = 1014.60
(Multiplying by 0.73 to account for DIRT)

It's not an accurate calculation by any means but is close enough for
comparison.

daithi2011

There are sites like www.askaboutmoney.com which have postings on interest rates for different acconts. You should be able to find all the accounts and their rates, as well as conditions and offers etc in the one place.