I'm debating between a few online savings accounts. HSBC and Emigrant direct have similar rates (5.05%) but HSBC interest is compounded monthly whereas Emigrant is compounded daily.
What's the difference? Would it make a difference in the yield in the end?
2007-03-26 10:44:15 · 2 answers · asked by Caribou2 1 in Business & Finance ➔ Personal Finance
Over 1 year....
5% compounded daily =5.13%
5% compounded monthly =5.12%
so there's not alot of difference.
2007-03-26 11:57:42 · answer #1 · answered by nickfromct 3 · 1⤊ 1⤋
The APR, annual percentage rate, is not particularily useful in determining the best bank. The APY, annual percentage yield, includes the method of compounding-daily, monthly, etc. By comparing the APY at the various banks, you can easily decide which would be the best investment. Both Emigrant and HSBC currently have 5.05% APY on money market accounts. (HSBC now advertises 6.00%, but that is only until the end of April) .
2007-03-26 19:23:09 · answer #2 · answered by oakhill 6 · 0⤊ 0⤋