2007-05-15 18:18:51 · 3 answers · asked by ty 1 in Business & Finance ➔ Personal Finance
Yes that is how it works. Check how often the interest is compounded. If its compounded monthly you'll get 5% if its more ofter you'll probalby get 5.003 or something like that. The yeild if often higher than the interest rate depending on how ofter the interest is compounded.
2007-05-15 18:22:55 · answer #1 · answered by answer-answer-answer 3 · 0⤊ 0⤋
Interest rates on CDs are ALWAYS annualized. You'd need to leave it there for a full year to get your full 5%. In one month, you'll get .4166%.
A one month CD will require you to either roll the money over to a new CD at the then current rate after the month or withdraw your funds. If you don't elect one or the other it will normally be rolled into a passbook savings account at market rates, currently less than 2%.
2007-05-16 01:25:53 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
To make your life more simple you may just want to put your money into a high yield online savings account that pays 4.5% to 5.05%, and then you can use your money whenever you want without the restrictions of a CD.
EmigrantDirect
HSBCDirect
INGDirect
2007-05-16 03:34:45 · answer #3 · answered by Anonymous · 0⤊ 1⤋