What percent am I getting each month in interest for my online banking account?

What percent am I getting each month in interest for my online banking account?

I have an online banking comment which recieves 5% APY as well as a Interest rate is 4.89%.

What only is APY, as well as what is a 5% used for. What is a seductiveness rate per month? Do we only order 4.89% by 12?


Subscribe RSS 2.0 feed.Leave a response when people search for from your own site.

2 Responses to 'What percent am I getting each month in interest for my online banking account?'

  1. Dubbsbrother - April 11th, 2010 at 9:26 am

    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.

  2. Dr. Deth - April 11th, 2010 at 9:26 am

    Basically, yes – you are getting about 0.4% per month


Leave a Reply