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Old 03-09-2008, 07:48 PM
Hypersion Hypersion is offline
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Quote:
Originally Posted by cartmanfromsouthpark View Post
Hey there. I'm new to this thing and have just one basic question I need to ask: How exactly does the APY rate work? I just enrolled with ING Direct Orange Savings account and just want to know how exactly my money will earn interest. I think I have an idea from what I've been reading but still remain unclear on how this process works.

If I deposit say $100 today March 9, 2008 and their APY rate is 3.40%, then if the money remains untouched for a year, will my original deposit have earned only 3.40 percent and I'll end up with a mere $103.40? I sure hope this isn't the amount my deposit earns after a year because it isn't much of an incentive to have a hundred bucks sitting around only to get back a mere 3 dollars and forty cents back. I'd rather just collect and recycle cans if that's what I'll earn after a year.
don't forget the govenment get 1/3 too.
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