How does interest get paid to you on your savings?

[Overthinker918]

Apologies if this is a silly question, but, if you open up an easy access savings account (i.e you can withdraw at any time), how is interest calculated and paid?

Say I have £2000 in savings, move it to an account, which pays 2% interest per annum.

Does that mean I get paid around £3 each month into my account (2% of £2k is £40 / 12 months)? I guess this would fluctuate if the amount of savings goes up and down?

I have some money in my savings that is currently just sat in a Monzo pot earning absolutely nothing and I want to do something with it, just don’t really know where to start…

It depends if interest is paid annually or monthly

Yes, it is added monthly, or yearly depending on the account.

Some accounts pay monthly, some quarterly and some annually, or some let you choose.

You're understanding of monthly interest is roughly correct.

*your

I had a savings account some years ago.
The interest was paid on the anniversary of you opening the account, in one lump sum.
Things may be different now.

I’ve got an ISA (need to change it as the rate is terrible actually) and in December there is a payment in to the account marked ‘interest’.

starting interest earning savings in Monzo is so easy! Choose to open a new pot and opt to earn interest. At the moment they are offering easy access at 2.4%. Once it’s set up you’ll be able to see the interest accruing each day and then it is added to that savings account at the end of each month.

They also have some fixed savings where it is all paid at the end of the - better interest but your money is locked away.