Hi,
i'm planning on puttting around $25g in the bank. i was looking in icici bank which offers 4.25%/monthly. im not sure if i have it right, do they pay 4.25 on the amount you have every month or is it per year?
http://www.icicibank.ca/personalbanking/pb_term.htm
thanks
2007-08-03 18:03:29 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
hey,
so basically its gonna be XXamount of money times 4.25 each month?
sorry im new to this stuff..lol
2007-08-03 18:17:34 · update #1
The 4.25% is per year. Rates of 51% per year just don't happen. The reference to momth most likely means that they post it monthly to your account, but it would be 1/12 of the 4.25%.
A term deposit means that you contract to leave the money in for the length of the term. They are saying that if you contract for 1 month, the annual percentage rate is 4.25% - if you just left it in for a month, then you'd get 1/12 of 4.25% times the amount of money.
2007-08-03 18:19:01 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Typically banks quote an APY - Annual Percentage Yield.
In this case interest on your money is paid to you each month. Your annual yield is 4.25% assuming that you reinvest your interest (compounding each month).
2007-08-04 01:11:22 · answer #2 · answered by kevinjohnbrown 2 · 0⤊ 0⤋