If I have $2000 in a savings plan with a 5.05% APY, will I earn monthly interest and how much?

Question

Thanks!!!

Which would be better in this situation an APR or an APY? what is the difference between the two?

Answer 1

( $2000 X .0505 ) divided by 12 =
Just over $8 per month .

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Answer 2

An APR is the annual percentage rate applied to an account. Then considering how often it compounds (monthly, quarterly etc) you get your APY, the annual percental yield.
So to figure what you'd earn in one month, you need to know the APR and how often it is paid or compounded. And over time you earn the APY. Always shop APY because it includes any compounding (interest on interest).

Answer 3

APY and APR difference is barely noticeable, in fact, CD interest is barely noticeable.

You'll get $100 at the end of the year. Less than 30 cents a day, can't you just pocket a quarter every day and save it up anyway?

Reconsider whether CD is worth waiting and holding your money hostage for. I had less than $1000 last year, putting it all in silver has made me over 30% profit. Considerable low risk, fun too.

Answer 4

Take your APY of 5.05% and divide it by 12.
.0505 divided by 12 would be: .0042083
Take .0042083 and multiply it by $2,000 = $8.42 per month
Take $8.42 multiply it by 12 months = $101.00 for year.
What to get a little better than this?
Go to AmTrustDirect. com. I have a money market checking account there and it pays 5.31% APY. My account is insured (FDIC)
So 5.31% (.0531) divided by 12 = .004425
.004425 multiply by $2,000 = $8.85 per month
$8.85 x 12 months = $106.20 per year
Good Luck

Answer 5

The exact amount will be determined on how often it is compounded. The approximate amount will be $8.40 per month.

$2,000 x .0505 = 101.00 / 12 = $8.42

I hope that this helps.

Answer 6

Yes about ten dollars a month

Answer 7

should be around $9.17 per month

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