How is interest calculated?
Interest accrues daily based on the student's current savings balance, but it does not compound daily.
The interest rate you set for a class applies to each payout period.
For example, say a class has a monthly interest rate of 3%...
and a student has $550 in savings throughout the month
they would earn approximately 3% of their savings balance for that month.
Each day, a portion of the period's interest is calculated and added to the student's pending interest.
This pending interest does not become part of the student's savings balance until the scheduled payout.
When does interest compound?
Interest compounds when it is paid out.
At the end of each payout period, the accumulated pending interest is added to the student's savings balance. That new balance is then used to calculate interest during the next payout period.
How often is interest paid?
You choose how often students receive their accumulated interest:
Weekly: Every Friday
Biweekly: The first and third Friday of the month
Monthly: The first Friday of the month
Choose the cadence that best fits your classroom economy.
Important to know
The interest rate applies to each payout period, not to a full year.
For example, with a 3% monthly interest rate and a $550 savings balance:
$550 × 3% = $16.50
So the student would earn $16.50 in interest for that month, assuming their balance stays at $550 throughout the month.
That $16.50 is then added to their savings balance at the monthly payout.
Their new balance would be $566.50, which becomes the balance used to calculate interest during the next month.
If you want ClassBank to feel closest to a real savings account, set a monthly cadence with a 0.25% interest rate. The rate is applied each payout period, 0.25% monthly is roughly equivalent to a 3% annual rate.