Interest is extra money that the bank gives you for saving your money at the bank. The more money that is in your savings account, and the longer you keep it at the bank, the more money the bank will give you for keeping it there. That's why you want to keep as much money in the bank as you can, for as long of a time as you can.

The bank keeps track of how much money you have in your account. That's one of the things that is in your passbook. The bank multiplies how much money is in your account by something called an interest rate. The higher the interest rate the more money the bank pays you to leave it there.

Click on the arrow below to find out why you get interest.