OT: Question for anyone who knows anything about banking

mrd694 · Feb 22, 2007

My bank is offering me a savings account for up to $10,000 with 5% APY.
Does that mean that I will get $500 each month if I have $10,000 or does that mean ill get $500 each year if I got $10,000 in there? I am a little bit embarrassed asking this at the bank. Do any of you know of a better % that is offered by another bank?

namathfan · Feb 22, 2007

That's $500 interest for the year.

The deal they are offering is a good one.

heatohio · Feb 22, 2007

mrd694 said:
My bank is offering me a savings account for up to $10,000 with 5% APY.
Does that mean that I will get $500 each month if I have $10,000 or does that mean ill get $500 each year if I got $10,000 in there? I am a little bit embarrassed asking this at the bank. Do any of you know of a better % that is offered by another bank?

I'm not 100% sure about this but I think this is per month. I know it is per month in a CD. You should not be embarrased to ask your bank a question. It is better than going into something and not understanding or passing up a good offer.

andreww2368 · Feb 22, 2007

that is an apy% (annual Percentage Yield).. so if you deposit 10,000 into 5% then you will get 500 a year.. which is 41approx..

http://www.investopedia.com/terms/a/apy.asp

CD's offer you better rates.. why not invest into the stock market?? if you are looking for a long term holding..

DarrylParsons · Feb 22, 2007

mrd694 said:
My bank is offering me a savings account for up to $10,000 with 5% APY.
Does that mean that I will get $500 each month if I have $10,000 or does that mean ill get $500 each year if I got $10,000 in there? I am a little bit embarrassed asking this at the bank. Do any of you know of a better % that is offered by another bank?

Interest rates are quoted as annual rates but are sometimes paid at different intervals like monthly or even daily. In that case, the rate you get per month is the annual rate divided by 12. So you are getting 5% per year. A bank which offered 5% per month in USD would go broke pretty quick.

AdamSelene · Feb 22, 2007

Darryl Parsons said:
Interest rates are quoted as annual rates but are sometimes paid at different intervals like monthly or even daily. In that case, the rate you get per month is the annual rate divided by 12. So you are getting 5% per year. A bank which offered 5% per month in USD would go broke pretty quick.

LOL, 5% per month would be a HYIP (i.e. ponzi scheme or other scam)

Although I'm not sure 5% AYP with interest paid monthly would be 0.4074% per month ((1.05^(1/12) -1)*100), yielding 5% per year after compounding; or 0.4167% per month (5% / 12), which will yield 5.11% per year after compounding. I presume the former.

hosnatcher · Feb 22, 2007

I don't even have a savings account. I use only a checking account. I don't want to deal with the headache of claiming interest on my tax return. I find it keeping all of my money in my checking makes it that much harder for the governement to find out how much money you are spending and saving each year. I do however deposit 2% into my 401K (My company doesn't match. cheap bastards). Plus I have an IRA that I opened a few years ago to transfer my 401k over from my last .job. The IRA is earning some $$$ for me every year and I don't have to report it as earned income. :suomi:

mrd694 · Feb 22, 2007

Thanks for the help guys. Another question say I have a checking account at a bank and would want to open a cd.Is a CD like a paying savings account where i can transfer money from one to the other? Also anyone know of a bank that offers a debit card for a savings account?

heatohio · Feb 22, 2007

mrd694 said:
Thanks for the help guys. Another question say I have a checking account at a bank and would want to open a cd.Is a CD like a paying savings account where i can transfer money from one to the other? Also anyone know of a bank that offers a debit card for a savings account?

This I do know because I just inquired about a CD myself. A cd is just a savings account that you can't touch the money for a certain amount of time. Like 6 months for example. My bank told me they had a 6 month cd with a minimum of $1000. It has a 4.61% interest rate. This pays every month and compounds over the time. So a $1000 account would net you a little over $300 for 6 months. Not too bad if you ask me. As for a debit card for savings, I don't believe there is. Why would you need that if you have a checking account?

beenlosing4ever · Feb 22, 2007

heatohio said:
My bank told me they had a 6 month cd with a minimum of $1000. It has a 4.61% interest rate. This pays every month and compounds over the time. So a $1000 account would net you a little over $300 for 6 months. Not too bad if you ask me.

LMFAO! Not too bad if you ask me? Hell, if I could get $300 every 6 months for every $1000 I have, I would retire immediately. You obviously don't know what you're talkin' about or are seriously misinformed.

uppy:

bellyputter · Feb 22, 2007

$300 interest on $1000 for 6 months? That's a better deal than when some books used to let you buy off the 3 in the NFL for 10 cents.

BCEAGLE1996 · Feb 22, 2007

I have to beleive that HEATOHIO was just kidding with that post since I cant imagine anyone being that stupid. If he is serious, I would love to book his action!

mr21 · Feb 22, 2007

maybe heat added an extra 0 to his potential earnings?

mrd694 · Feb 23, 2007

Okay need some help hear check this bank out they offer 4% on a 31day CD min 2500 does that mean I will get $200 for $5000 that I leave in there for 31days? Am I missing something? Bank CD Rates

BCEAGLE1996 · Feb 23, 2007

mrd - stop being sarcastic - no one will answer you...

mrd694 · Feb 23, 2007

wtf are you talking about?

mrd694 · Feb 23, 2007

its a serious question as you can find out by looking at my original question

BankerC · Feb 23, 2007

WOW! This thread is a perfect example of why banking and finance should be a subject or at least a elective in every highschool in america.

heatohio · Feb 23, 2007

beenlosing4ever said:
LMFAO! Not too bad if you ask me? Hell, if I could get $300 every 6 months for every $1000 I have, I would retire immediately. You obviously don't know what you're talkin' about or are seriously misinformed.

uppy:

I'm going by what my bank told me you fucking ass. I guess your name says it all you are a lifetime loser. I specificaly asked asked about them about CDs. They told me that they had a 6 month CD at 4.61% paid monthly. I asked if that meant that you get 4.61% each month or if that was divided by year of 6 months. They told me it was each month. I did the math and compounded each month equals over $300 for a 6 month CD. Are you telling me that you would only get $40 for every 1000 for 6 months? I'm not sure how I'm the idiot when the banker told me this. I'm going to check once again today and get back to you fuckers. You can play your online video games while you wait for my response later you bunch of losers.:lolBIG:

heatohio · Feb 23, 2007

BCEAGLE1996 said:
I have to beleive that HEATOHIO was just kidding with that post since I cant imagine anyone being that stupid. If he is serious, I would love to book his action!

If you want to book my action newb you are more than welcome to. Do you want to give me your money now or when I win it from you. You obviously never entered the NBA forum and seen my threads. :lolBIG: