Maximising savings interest
Explore why rate and time are the two multipliers in I=P×R×T.
In this lesson
Maximising savings interest is part of Interest Grows Savings. This preview shows how interest-growth connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Today’s money mission
Imagine this situation: You want to maximise savings interest. You have 100000 in local currency for 2 years. Rank these from best to worst: savings account 6%, fixed deposit 10%, FGN Bond 12%.
How it works
Rate and time are the two multipliers in I=P×R×T. Maximising both — choosing the highest available rate and leaving money invested as long as possible — maximises returns.
Apply it to a real decision
Real-life money moment: You save 5000 in local currency/month for 12 months. In which scenario do you earn the most interest? A: savings account at 6%. B: fixed deposit at 11% (lock whole year). C: switch banks every 3 months for promo rates. — B works if you deposit a lump sum at start. But if depositing monthly, A/C may be closer. In practice, B is best if the full amount is available upfront — 11% compounds on the full principal all year.
Activity preview
Apply the idea
Use the lesson to complete this short practice activity.
Practice adding money to savings
Open Requests and make a deposit request into savings so you can see how saving starts. Parent approval can happen later.
Quiz preview
To maximise savings interest:
You want to maximise savings interest. You have 100000 in local currency for 2 years. Rank these from best to worst: savings account 6%, fixed deposit 10%, FGN Bond 12%.