If the interest rate is 4.91 and you put in 2000 for a CD will that be 98 dollars every month or98 for the yr?

Question

I am trying to basically save money

Answer 1

The interest rate is stated in terms of APR.
(Annual Percentage Rate).

2000 * .0491 = $98.20 interest earned for the year.

Find out how often the interest is compounded,
this will make a difference in how much money you earn over time. Here's an example :

Let's say you have $1000 to invest at 8% interest.
Compounded annually after one year = $1080.00
Compounded semi-annually, (one year) = $1081.60
Compounded quarterly, (one year) = $1082.43
Compounded monthly, (one year) = $1083.00
Compounded daily, (one year) = $1083.28
Compounded continuously, (one year) = $1083.29

Notice that there's only .01 cent difference between being compounded daily and continuously, but even small amounts will add up over time.

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Good luck.

Answer 2

Interest rates are always stated on a yearly (or annual) basis. Use this easy formula to calculate interest you'll receive:

Your Money x Interest Rate = Interest
$2000 x 4.91% = $98.20 per year

For your monthly interest, you'll need to just divide by 12:
$2000 x 4.91% / 12 = $8.18 per month

Good luck.

Answer 3

If it is simple interest, you would receive $98.20 for the year. Depending upon the bank (credit union, savings & loan, whatever) some compute interest daily, some compute it quarterly or other terms (length of time). The shorter the term to compute interest, the greater will be your payout (interest earned). On $2,000, there would not be much difference in interest, but the more, the better for you.
At present, there are banks or credit unions paying more than 5.2%; if there are 2 of these banks paying the same interest rate, the one that compounds the interest in the shortest time perior will pay you more interest.

Answer 4

i stumbled on ONE online financial business enterprise that provides extra effective than 0.9% annualized - a million.35%, which might translate to basically $3375 activity in 3 months - maximum banks are interior the 0.5-0.8% annualized fee and that trate could no longer be around whilst the three months is as much as resume NO US financial business enterprise supplies everywhere close to 4% for even 5 year CD's, in no way strategies 3 month

Answer 5

$98.20 for the year.