This article explains how partner banks pay interest on deposit accounts, including when interest is credited, how it compounds, and what you can expect depending on the product type.
What is interest capitalisation?
Interest capitalisation refers to how and when the interest earned on your deposit is credited. This is determined by the partner bank and can be easily found in the product details or in the Product information sheet of each savings account.
When is interest paid?
The timing and method of interest payment vary based on the type of deposit and the length of the term.
For fixed-term deposits under 1 year:
- Interest is usually paid at the end of the term (maturity).
- It is then either transferred to your Raisin Account or reinvested if you choose to extend the term.
For fixed-term deposits of 1 year or more. Depending on the partner bank, interest may be:
- Capitalised annually - paid to tour Raisin Account or reinvested every 12 months
- Capitalised at maturity - paid or reinvested at the end of the term
Note on annual capitalisation:
The term “annually” refers to every 12 months from the date your deposit is opened, not by calendar year. For example, if your account is opened on 15 January, your first annual interest booking will be made the following 15 January.
For Demand Feposit accounts:
- Interest is compounded monthly,quarterly or annually depending on the partner bank’s terms.
- These accounts allow instant access to funds, but interest still accumulates over time.
How can I check how interest is paid for a specific product?
You can check the interest capitalisation method in the following places:
- The Product Information Sheet - available before applying and under the ‘My Savings’ section of your Raisin Account
- The product details page during the application process and then at any time in your ‘My Savings’.