How Parent-Paid Interest Works
The parent-paid interest rate you set for your child’s Savings is an annual percentage yield. Your parent-paid interest is calculated and paid monthly based on the average daily balance of your child's “Total Savings” for the previous month. The amount is paid from your Parent's Wallet to your child's savings account on the first of the month.
Where does my interest payment go if my child has multiple savings goals and a general savings account?
The monthly interest payment is allocated across your child's savings goals and general savings based on the average daily balance in each account. of how a $1 monthly interest payment on $100 in total savings would be paid out across a child's savings accounts:
What if there's not enough money in my Parent's Wallet?
You will receive an alert notifying you that there is not enough money in your Parent's Wallet to give your child interest. Your parent-paid interest amount will be put on hold until money is added to your Parent's Wallet.