Do I get the 5.0% (or whatever it is) at the end of the year with the balance i have? Im just confused.
2006-09-12 08:02:50 · 6 answers · asked by londono83 1 in Business & Finance ➔ Credit
No.
They break it down on a daily basis and your savings account earns that tiny daily rate on the portion in the account on that day (it's credited once a month).
They quote it in terms of the annual rate, because that is standard banking procedure.
2006-09-12 09:06:12 · answer #1 · answered by derek 4 · 0⤊ 0⤋
If 5.0% is your YEARLY interst, this is likely "compounded" once a month. You don't get to collect a year's of interest on money you JUST deposited.
I'm not familiar with ING's, but you either compound once a year, in which the funds only get interest ONE YEAR after you deposit, or it compounds something like weekly/monthly, in which its based on the income AT THAT TIME.
2006-09-12 15:33:09 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I think it's done by an average, the same way credit card interest is calculated.
I like ING. I have an account myself, and it's good.
2006-09-12 15:08:37 · answer #3 · answered by Funchy 6 · 1⤊ 0⤋
I have a similar account and interest accrues on the monthly average, once a month.
2006-09-12 15:09:21 · answer #4 · answered by joe b 3 · 0⤊ 0⤋
(british accent) You save your money. Your savings grow. ING Direct.
2006-09-12 15:06:01 · answer #5 · answered by steve w 5 · 0⤊ 0⤋
not with the balance you have at the end but on the medium balance,.. if that is not greater than ad
2006-09-12 15:08:17 · answer #6 · answered by hailey 4 · 0⤊ 0⤋