If you’re looking to make the most of your savings, understanding how bonus interest works can help.
What is bonus interest?
Bonus interest is an interest rate that is paid in addition to the base interest rate of a savings account. Financial institutions offer bonus interest on certain savings accounts to customers who meet qualifying criteria. This criteria tends to vary between accounts.
Base interest vs bonus interest
Base interest is the standard interest rate that applies to your savings account. Depending on the account, you may receive the base rate on your savings, regardless of whether you meet the conditions required for bonus interest.
Bonus interest is an additional rate that applies when you meet the account’s qualifying criteria and conditions.
How do I earn bonus interest?
Each savings account can have different conditions which determine how you qualify for bonus interest. At People First Bank, you can earn bonus interest with our Dream Fund savings account. To qualify for bonus interest each month, your closing balance must be greater than your opening balance (excluding interest) for that month.
If this condition isn’t met, the bonus interest rate won’t apply for that month.
You can see the current bonus interest rates for our Dream Fund.
What if I make withdrawals?
Dream Fund allows unlimited transactions, but keep in mind that transactions can affect whether your closing balance is greater than your opening balance for that month.
For example, if you start the month with $200, deposit $10 and then withdraw $20, you could finish the month with $190. In that situation, your closing balance would be lower than your opening balance, so you wouldn't meet the bonus interest conditions for that month.
While transactions aren't restricted, you'll need to keep an eye on your overall balance to make sure you qualify for the bonus interest.
How do I open a Dream Fund savings account?
If you’re already a People First Bank customer, you can open a Dream Fund in your App or Online Banking. If you’re not yet a customer, you can join by downloading our App from your device’s app store, and open a Dream Fund in the App.
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