What percent am I getting each month in interest for my online banking account?
Wednesday, January 5th, 2011
at
9:54 pm
Question by SF Giants Fan Forever: What percent am I getting each month in interest for my online banking account?
I have an online banking account that recieves 5% APY and the Interest rate is 4.89%.
What exactly is APY, and what is the 5% used for. What is the interest rate per month? Do you just divide 4.89% by 12?
The best answer:
Answer by Dr. Deth
Basically, yes – you are getting about 0.4% per month
Whether you agree or disagree, why not leave your own thoughts below.
Tagged with: account • banking • each • getting • interest • month • online • percent
Filed under: Online Banking
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The APY is your Annual Percentage Yeild. The 5% means that you would earn 5% on your money annually. The interest compounds. So if you put in $ 1,000 on January 1st you would earn $ 50 of interest on that $ 1,000 for the year. The 4.89% is your effective interest rate. Since interest compounds you earn interest on your interest. You earn that 4.89% on your interest as well. Thats how the 5% and 4.89% come into play.