Newbie Savings Account: Basic question

Samp · #1 (**permalink**) 03-31-2005, 04:56 AM

Hello!

I have a question about a basic savings account.

X Bank is offering 3 percent interest on savings accounts. X Bank says that interest is credited monthly.

I just need someone(s) to confirm that this means if I have $1,000 in the bank the entire month I will gain $30 in interest EACH MONTH AND EVERY MONTH as long as I keep that $1,000 in there.

I assume this is correct but I need some advice

Thanks all

34saving · #2 (**permalink**) 03-31-2005, 05:39 AM

We would all love it if that was true, but it's more likely that the 3% is an annual rate and that they put (3%/12) in your account every month. So, if you leave $1000 in for a year you'll get $30 in interest. If I'm wrong please let me know. I would LOVE that bank!

Samp · #3 (**permalink**) 03-31-2005, 05:42 AM

Ah-ha I should have known that sounded too good to be true

Thank you for the quick response!