how does the interest work on the ing orange bank account ?

Question

I'v heard that it is about 4 or 5 percent, is this monthly or yearly ??

if i deposit $5000 how much will it become in a month ??

Answer 1

Anytime you're talking about interest concerning a bank, you're talking about APR (annual percentage yield) so it's 5% per year. But the interest is compounded. So if you have $7000, in a month you will earn about $26 in interest (that's ruffly 5% divided by twelve months). Now you have $7026 in the bank and the next month you will make interest on that total an so on. The fact that interest is compounded means you'll make more at the end of the year than simply 5% of the money that you put in.

Answer 2

The interest is an annual interest rate. Also, since the interest is paid monthly, you have to take into account compounding of the interest (you are earning interest on the interest paid to you in previous months as well as your original balance).

Answer 3

Those are always annual rates.

ING Direct accounts are very good compared to many other options.