Savings interest rates

[snozzberger]

I put £900 in a 3% interest rate savings account last month, and this month it has gained £1.59. That's not 3%? What am I not getting?

does it only pay interest annually ?

Is it 3% apr, that means annual percentage rate. It will probably earn about £27 a year, possible a bit less depending on what day of the month you put it in.

Aah ok, that makes sense. So it is an annual interest rate. Thank you, I didn't know how these things work!