That percentage was just an example but I have a guy told me that Citibank Private Bank can give him upto 7% per month net, damn is that possible ? If yes how is it possible ? Does anyone know a bank that pays monthly 4%-7% net monthly (not yearly) ?
2007-03-20 02:08:38 · 6 answers · asked by umoorjani 1 in Business & Finance ➔ Investing
But with Amboy it's APY and not monthly is it ? you don't get 5$ every month on a 100$ deposit do you ?
2007-03-20 02:14:52 · update #1
OK, so your telling me it's probably a lie then right ?
2007-03-20 02:37:37 · update #2
First of all 4% - 7% monthly would translate into 48 - 84% annually. That isn't and will never be possible in the US or abroad. Currently CDs typically pay 5 - 5.5% annually. If CDs paid even 10% annually no one would be in the stock market. There is a relationship between risk and return, CDs have little risk so they offer a smaller return. Penny stocks offer a ton of risk and will sometimes have a big return (and other times go to zero leaving you with nothing.)
2007-03-20 02:15:03 · answer #1 · answered by Mr Chris 4 · 1⤊ 0⤋
Think about the risk/return tradeoff.
A CD is somewhat safe, a lot safer than stocks that is. If stocks yield on average (over a very long period) between 12% and 14% a year the how could a CD yield 50%? it makes no sense, if that instrument was out there don't you think many would sell their stock and jump into that investment? would you do it? offcourse...
Also if a bank if willing to pay you 50% a year for your money it means that it most be making more on that money, which is crazy (specially when you look at Citibank's stock, it has underperformed many of its competitors and the bank industry over the last years).
Anayway, in a country wiht low inflation (like most developed countries) 50% a year in a CD is crazy. In countries with a lot of inflation 50% might even be low....
2007-03-20 09:54:56 · answer #2 · answered by Quilla 2 · 0⤊ 0⤋
It all depends on how much you want to put on deposit.
I'm getting 5.25% from Amboy Direct on any amount over $100, and it's not a certificate of deposit. It's regular savings that I can deposit and withdraw at any time without penalty.
And, it pays interest monthly, not annually. The online statement says "5.13% monthly" but compounded, that's 5.25% annually.
4-7% per month? No way. That's 48-84% per year! If there were a way to do that, we'd all be doing it.
2007-03-20 09:12:01 · answer #3 · answered by Scotty Doesnt Know 7 · 0⤊ 1⤋
That is absolutely not possible on US denominated deposits. The current annualized rate on a 6 month day CD is about 4.6%.
2007-03-20 09:16:26 · answer #4 · answered by erica d 1 · 0⤊ 0⤋
No. Not possible. Anually, perhaps the lower end of that scale, but not monthly.
2007-03-20 09:12:58 · answer #5 · answered by BosCFA 5 · 0⤊ 0⤋
LOL!!! Of course it's not possible....
2007-03-20 09:11:02 · answer #6 · answered by Anonymous · 0⤊ 0⤋