I have a saving's account that pays 5%(.05) APY, It says it pays quarterly. For simple math I'll use round numbers, lets say I put 1,000 in my account, will I get .5% every quarter??? Or a fraction of the 5%?
If it pays 5% every quarter, my first month will be a gain of 50 dollars.
I saw another bank that has a CD, CD's supposedly pay more interest rate, it says 2.80% apy, for 5yrs... i used a APY calculator, the gain i get is...148 dollars. Is this correct??? I can probably go around the parks picking up cans and gain more in a month, then having the bank deal with my money in 5yr period of time.
If it pays 5% every quarter, my first month will be a gain of 50 dollars.
I saw another bank that has a CD, CD's supposedly pay more interest rate, it says 2.80% apy, for 5yrs... i used a APY calculator, the gain i get is...148 dollars. Is this correct??? I can probably go around the parks picking up cans and gain more in a month, then having the bank deal with my money in 5yr period of time.