Does anyone know a bank that has a 5% interest rate that pays monthly?

Question

(EXAMPLE) If I have 300 dollars in January, at the end of the month I will have 315 in the bank. And the next month I would have 331 dollars cause of the interest rate?

Answer 1

There is no legitimate bank that will pay you that amount of interest every month. But as others point out, there are some banks--mostly online banks--that offer interest rates right around 5% annually. Even money market accounts are only slightly above the savings account APRs.

Answer 2

On line banks are your best bet, but it's an annual rate. I have one through EmigrantDirect (see below). It's charging 5.05% annually presently. It's also FDIC insured like any bank account.

You have to tie it to an existing bank account, so you can transfer money in and out.

EDIT: A 5% monthly rate would be a 60% annual rate. You cannot get there from here (without a lottery ticket involved, or become a credit card company). The highest rate of returns is in the stock market, and it has, historically, been about an 8-9% annual return.

Answer 3

No. Banks pay an annual rate, not a monthly rate.

My PayPal business account is currently paying 5.03% per annum, which is 0.419% per month.

So $300 at the end of the first month will pay $1.26 at the end of the first monthy, and your balance would be $301.26.

Quite often they compound the interest daily instead of monthly, in which case it would grow a little faster,.

Answer 4

Any bank that pays 5% monthly will be scamming you or out of business very soon.

In the USA 5% annually is considered a great savings rate. Some FDIC Insured banks that pay in that area are;
GMACBank.com (our favorite)
HSBCDirect.com
INGDirect.com
EverBank.Com

Emmigrant also has good rates... but... their service is poor.

Good luck.

Answer 5

I use ING Direct (Orange Savings) and it pays out my interest monthly.