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Old 03-10-2005, 11:47 AM
coffeebreak coffeebreak is offline
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Default Re: ING Direct: Interest Compounded Daily/Monthly?

Quote:
Originally Posted by 34saving
Looks like Emigrant has a better compounding method too. Really quick calculation (IE, I could be wrong) shows Emigrant effective yield is 3.045% while ING's is 2.631% Hmmm . . . more to ponder.
ING and Emigrant both use what they call an Annual Percentage Yield (APY) to state what you will earn, so it's 3% after compounding, not 3.045%. Same thing with ING; 2.6% not 2.631%.

Emigrant's actual percentage rate is 2.96% with an APY of 3%. ING's is probably something like 2.565%.

It would be nice if the banking laws would say that you can only advertise percentage rates in one way; either APR or APY.
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