Do you Collect Interest monthly from a online savings account?

Question

From any online bank, like there money market and savings accounts?

someone told me different, but i think you collect interest monthly. am i right?

Answer 1

yes, all bank interest is monthly.

the interest is credited directly into your account, and depending on the bank you can take cash out from ATMs, transfer into a local account, etc.

some online banks pay excellent interest, for example ING DIRECT savings account pays you 4.5%, this is almost like a CD rate.

Go to www.bankrate.com to see all the various accounts available.

Answer 2

My money market works like this: interest is compounded daily, but credited at the end of the month. Since it's figured daily, if I withdraw my money before the end of the month, I'll get all of the daily interest as well. I've had MM's with INGDirect and EmigrantDirect, and they both work the same way. When you log in, you can see how much you earned up to the close of the last business day. In other words, they don't "keep" any of the daily interest you've earned if you decide to withdraw everything.