When you have a savings account are you supposed to get like 4% interest a month or a year?
2006-10-08 03:45:57 · 10 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
The interest quoted (I'd be surprised if it was 4%) is an annual interest, but it is accrued usually once a month. That is, once a month the interest is 1/12th of that which is quoted as the annual interest. This is so it is compounded. If you leave the interest in the account, you will then be earning interest on a larger amount, etc. If you don't touch it for a few years, that can add up significantly.
2006-10-08 03:54:50 · answer #1 · answered by auntb93again 7 · 1⤊ 0⤋
A year, and you might as well not bother. When I was a child the interest rates were in the high teens. 4% is stupid. Invest in realestate or something valuable. Until people stop putting money into accounts at 4%, the banks will just keep holding it low.
2006-10-08 10:49:04 · answer #2 · answered by neoliminal 2 · 0⤊ 0⤋
The 4% is a per year.
Check your paperwork when you opened up your bank account. You can earn interest in your savings accounts if it's like a CD account or interest maximizer accounts. Check with your bank.
2006-10-08 10:47:24 · answer #3 · answered by just me000 4 · 0⤊ 0⤋
If you can find a savings account with 4% interest..you are LUCKY!! It would be 4% for a year!
2006-10-08 10:49:25 · answer #4 · answered by candypdtnet 1 · 0⤊ 0⤋
that is per year. So per month it is .04/12
Also the only way you will find 4% is on the online savings banks like ING or HSBC direct. I think the highest I have seen is around 5%
2006-10-08 10:47:14 · answer #5 · answered by sup 5 · 0⤊ 0⤋
interest rates are tied in with the overall interest rates. mortgage rates are still relatively low, so the cost to others to borrow money is low meaning the bank will pay you even less to "use" your money. That's how it works -- they pay you something and they use your money to lend to others and they charge those others a higher rate to borrow the money. I think the going rate on a regular passbook savings account is probably around 1% right now. It's bad--if you have any outstanding debt like a credit card, use that money to pay down your debt because that debt is probably costing you 18% .
2006-10-08 10:54:06 · answer #6 · answered by Anonymous · 0⤊ 0⤋
a year
2006-10-08 10:47:27 · answer #7 · answered by barrakuda 1 · 0⤊ 0⤋
Per year. Payed out in monthly installments
2006-10-08 10:48:00 · answer #8 · answered by Jack 7 · 0⤊ 0⤋
yup, it's 4% per year.....and the interest you receive is taxable income.
2006-10-08 14:14:11 · answer #9 · answered by Jack 6 · 0⤊ 0⤋
per year .
2006-10-08 11:05:33 · answer #10 · answered by hariharan_hn 2 · 0⤊ 0⤋