For deposits, the amount deposited earns interest immediately, but the interest is paid into the account after a predetermined period of time. Each interest earning time period will vary from bank to bank and the type of deposit account. The deposit plus interest can then earn interest. When a deposit and previously earned interest earns interest, the interest earned is compounded. Some banks also charge fees for various banking services on deposit accounts; such as writing cheques, or using ATMs. The customer should ask if there are service fees, and how high they are
