Wouldn't be better to have a Savings or Checking Account that offers you say, 2% intrest per month?
2006-08-28 10:47:03 · 7 answers · asked by TNA Ambassador 6 in Business & Finance ➔ Personal Finance
Sure, but right now, you would be extremely fortunate to receive that kind of return on a savings or checking account annually. The bank rewards you for having less liquidity. A savings account and a checking account are the most liquid bank accounts out there. If you think about it, to get a rough estimate of your monthly interest, divide your APR by 12. Would you go running to the bank if they advertised a special rate of .5% per month? Yet people would love to get their hands on a guaranteed return of 6%.
2006-08-28 11:00:46 · answer #1 · answered by Freddie 3 · 0⤊ 0⤋
Banks still pay interest every month, using APY just lets you compare between banks and you can back-calculate your monthly yield as well.
2% a month is so incredibly high for retail checking accounts right now that the bannk would quickly go under. They would be paying out more in checking interest than they could possibly hope to make back in fees and loan interest (30 yr mortgages are at around 6.5% now).
2006-08-28 11:19:29 · answer #2 · answered by Shofix 4 · 0⤊ 0⤋
Be wonderful, if you get it let me know which bank. Well, on second thought, never mind. The bank will go down in 3 months or sooner.
Annual % yield is the actual yield for the year.
Go ahead, divide it by 12. I don't care.
2006-08-28 10:55:33 · answer #3 · answered by ed 7 · 0⤊ 0⤋
Most yield investments are annual, so it's for easy reference, especially when compound interest is used.
2006-08-28 10:56:53 · answer #4 · answered by gregory_dittman 7 · 0⤊ 0⤋
Wow! Thankss! Just what I was searching for. I tried looking for the answers on other websites but I couldn't find them.
2016-08-23 05:34:31 · answer #5 · answered by Anonymous · 0⤊ 0⤋
That's a great question
2016-08-08 13:43:43 · answer #6 · answered by Jeraldine 3 · 0⤊ 0⤋
It is just traditional that interest is expressed per annum. That way it is possible to compare different investments and different terms.
2006-08-28 10:53:53 · answer #7 · answered by veritas 5 · 0⤊ 0⤋