Which savings account will earn you the least money?

To determine which savings account will earn you the least money, you'll need to evaluate several factors, including the interest rates offered by each account, any fees associated with the account, and how interest is compounded. Here’s a guide to analyzing which account might earn you the least:

1. Interest Rate Comparison: Look at the nominal interest rates for each savings account. A lower percentage directly correlates with less interest earned over time.

2. Fees Assessment: Check if there are any monthly maintenance fees, withdrawal fees, or minimum balance requirements that could affect how much interest you earn.

3. Compounding Frequency: Understand how often the interest is compounded (daily, monthly, quarterly, annually). Less frequent compounding generally results in earning less interest.

4. Effective Annual Rate (EAR): Calculate the effective annual rate for each account to make a direct comparison. This rate accounts for compounding and fees. Use the formula:

   $EAR = \left(1 + \frac{r}{n}\right)^{nt} - 1$ where $r$ is the nominal interest rate, $n$ is the number of compounding periods per year, and $t$ is the number of years.

5. Time Factor: Consider how long you plan on keeping your money in the account, as the impact of lower interest can become more pronounced over longer periods.

By comparing these aspects, you can identify which savings account will yield the least money. Typically, accounts with lower interest rates, higher fees, and less frequent compounding will earn you the least.