How does the amount of money in your savings account grow over time?
(1 point)
Banks who are insured through FDIC add money to your savings
account each month.
Money from your checking account is automatically moved into your
savings account every month.
Money in your savings account earns a certain amount of principal each
year.
You can earn interest on the money you keep in your savings
account, which is calculated based on the annual percentage yield (APY) and the amount of money in the account. This interest is typically compounded either daily, monthly, quarterly, or annually, which means that the interest you earn is added to the original principal amount, allowing your savings to grow over time. The more money you have in your savings account and the higher the APY, the more your savings will grow over time.
