You may be told that interest will be figured on your average balance, daily account balance, day-of-deposit to day-of-withdrawal, or minimum balance. In order to figure out which is best for you, you will have to be familiar with how your monthly account balance varies. In general, figuring interest on the minimum balance is the least desirable method.

Rather than be confused by "bankerese," just ask, "If I invest X amount of money with you for one year, how much profit will I have in dollars and cents, not percent, at the end of the year?"

They may not be expecting such a logical question, but they should be able to give you a definite answer. If they can't, look for another bank. By asking the same question at several banks and comparing the rates, you will be able to select the highest rate. Over time, a small difference between rates can make a big difference.