I'm considering opening a savings account with ING Direct. Right now the savings rate is 4.5% which would be $45 in interest per $1000 yearly or 12.3 cents daily. My question is the interest paid daily? If I put $1000 in the account for 10 days; after the 10th day will there be $1001.23 avaliable for withdrawl? Any help would be appreciated. Thanks.
2007-09-05 14:31:47 · 3 answers · asked by Michael C 2 in Business & Finance ➔ Personal Finance
The interest is credited monthly at the end of the month.
There is a running total to show you how much you are earning though. This amount changes daily.
2007-09-05 15:22:04 · answer #1 · answered by Wayne Z 7 · 0⤊ 4⤋
No. The interest is not paid until you draw against the account. It is Compounded daily though. When you put money in the bank the figure you see represents what the bank owes you. There is no special draw or locker with your name on it. The money is invested, lended and otherwise used to make more money.
It's not there until you ask for it back.
Again it is compounded daily so in theory you are correct.
2007-09-05 14:37:26 · answer #2 · answered by loancareer 3 · 0⤊ 1⤋
No, you will see the interest each month, but not on a daily basis.
2007-09-05 14:35:15 · answer #3 · answered by mystikalyx 4 · 0⤊ 0⤋