Ahhh, 4.10% interest on my savings account feels good! Thank you to everyone who helped me see the light on this issue.
I have a question, however. I am under the impression that interest accrues daily and is credited to my account monthly. Hmmm. If I had $100 in savings today, would I have $104 tomorrow at 4% interest? And then would that $104 be $108.50 (or somewhere close) the next day?
That seems too good to be true.
ING Direct - How Exactly Does the Interest Work?
January 17th, 2008 at 01:02 am
January 17th, 2008 at 01:06 am 1200531984
Am I allowed to yank your chain and say that I'm glad you're not a math teacher?! *LOL*
January 17th, 2008 at 01:12 am 1200532353
January 17th, 2008 at 01:24 am 1200533057
January 17th, 2008 at 01:31 am 1200533488
English teacher should be able to confirm, but because i said 1.12 cents it is correct. If i said .112 cents it would be about one tenth of a cent. I could have said $0.112 and left the word "cents" off though.
January 17th, 2008 at 03:03 am 1200538991
Their APY is 4.10% which is a lot higher than my local bank, anyhow it is the yield you earn on a deposit over a year. However I am not sure how you calculate
Here is the formala for excel: =POWER((1+(A1/B1)),B1)-1 where A1 is the Rate and B1 is compounding frequency.
January 17th, 2008 at 03:24 am 1200540289
Maybe I am reading your post wrong, but I am reading it that you say she is earning 1.12 daily on her $100. She isn't earning that daily. If she is, I'll go to her bank in a heart beat.
She is earning about a tenth of a cent daily on $100.
January 17th, 2008 at 03:28 am 1200540531
Also, please note that there is a difference between APR and APY. ING is actually paying 4.1% APY, which unfortunately makes the APR to be 4.018% (or 4% for short).
But otherwise, yes, you're basically earning slightly more than a penny each day with an initial deposit of $100.
Edit: Woah woah, hang on! So many confusing little tidbits. Ok, assuming 4.1% APY = 4.0% APR, 4% of $100 is $4. $4 divide by 365 days = 0.01095, OR, 1.09 cents.
Here's a nice explanation between APR and APY
January 17th, 2008 at 03:53 am 1200541994
January 17th, 2008 at 05:56 am 1200549411
Rate is what they give you, yield is what you get. Take the Y, don't worry about the R.
Again, 4% per year. It accrues daily, so it gives you something to look forward to. It compounds monthly, so on the first of the month you'll see what has been accruing on your account.
FYI - every $100 bucks = penny more in interest daily. Gives you a little incentive to start forking it in!
January 17th, 2008 at 01:08 pm 1200575304
Hope that didn't make things more confusing.
January 17th, 2008 at 01:11 pm 1200575516
October 21st, 2010 at 02:29 am 1287628179