Can you take money out of you Savings and still get Interest?

Question

My dad thinks you can just take some money out of saving and you still get more and more interest. i thought once you take money out (but not all) you start over in interest?

Answer 1

In a standard savings account interest is based on whatever balance is in the account. A simplified exmaple is:

If you have $200 and you earn 2% interest per month (24% per year) then you will get $4 interest each month... if you withdraw $100 you will still get interest, but only $2 per month.

Again, this is simplified math with fictional numbers to show the point. And not all savings accounts are "standard" so the best person to ask is someone at your bank.

Answer 2

Can't earn interest on money that's not there