I have a checking account w/ Wamu and a certain amount in it. I know it doesn't have interest rate - basically, if I got $1,000 in there, then if I were to withdraw $500, there would be only $500 left. And if I deposit $200, there would now be $700. Basically, it's deposit/withdraw type of account.
Now, I just got a gift from a relative for $35K. That money will be use to pay new monthly mortgage. Now, someone told me to put that money in a saving account. However, I am confused on what it means to have an interest rate for them. For $25K to $49K, the interest rate on a "Guaranteed Great Rate Money Market Account" is 1.88 and APY of 1.73.
Does that mean, money get deducted each time I deposit from my saving account? Say, I deposit $2,000, then it would only be (2,000 - 37.6) = $1962.4 that gets deposited?
In that case, wouldn't it be better getting an additional checking account without the deduction? or monthly service charge?
2007-12-19
03:41:04
·
7 answers
·
asked by
James P
1
in
Personal Finance