Comments | penguinavenger: Money money money

penguinavenger

Money money money

Mar 06, 2008 17:48

So, I'm sure most of you guys have heard me bitch about Washington Mutual fucking my shit up from time to time, but they are actually doing something really cool right now that I thought I would share with you - It's a high-yield savings account that is pretty much just an informal CD. You can open it with any amount between $1-500, and ( Read more... )

Comments 4

fatesplaything March 6 2008, 23:15:09 UTC

Any clue how often interest is calculated?

penguinavenger March 6 2008, 23:56:09 UTC

Monthly, I believe.

ummm not exactly fatesplaything June 9 2008, 17:50:51 UTC

Hi.

The 6.5 APY is the yearly interest rate...Therefore, your monthly interest rate is WELL below 1 percent (it's 6.5/12, or around 0.54%). If they were giving away 6.5% interest monthly, they'd go broke..

So if you invested $5,000 in one year (500$ initially + $4500 over the twelve months), expect to get $5,325 at the end of one year (just multiply 5,000 by 1.065)...

Sorry to burst your (happiness) bubble, but that's the way it works...

Re: ummm not exactly penguinavenger June 9 2008, 22:01:53 UTC

There is a monthly APR of 6.31% on top of the APY. After speaking with the bank not long after posting this, I did learn that the formula for calculating monthly interest is much more complicated that I originally though. It still seems to be pretty good relatively though.

Thanks for your input, though?

Who is this, btw?