10-31-2007, 03:03 PM
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#1 |
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Greenhorn
Join Date: Jul 2006
Posts: 13
Rep Power: 0  |
does my savings account have COMPOUND interest?
its with ING Direct, i just opened it and cant find anything that says that its compounded.<br /><br />but if it IS compounded, that means i am automatically making interest off of my interest, not just my principal, right?<br />
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10-31-2007, 03:03 PM
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#2 |
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Greenhorn
Join Date: Jul 2006
Posts: 9
Rep Power: 0 |
does my savings account have COMPOUND interest?
Yes it is compounded and yes your interest will earn interest if you don't withdrawl it from the account.
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10-31-2007, 03:03 PM
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#3 |
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Greenhorn
Join Date: Jul 2006
Posts: 27
Rep Power: 6 |
does my savings account have COMPOUND interest?
Banks calculates interest on half yearly basis and the interest is credited to your account. Now the amount in your credit account is principal further when the interest will be counted for the next half it will be counted on the balance in your account. Thus the interest calculation comes compounded.
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10-31-2007, 03:03 PM
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#4 |
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Greenhorn
Join Date: Jul 2006
Posts: 18
Rep Power: 0 |
does my savings account have COMPOUND interest?
Yup, savings accounts have compound interest. Normally, it's not written on your SOA because as far as I know all banks have compound interest. They have to use compounding because they don't know exactly when you are going to make a withdraw on your account. Event though it's compund, most banks offer only an annual interest of 1%. If you want to earn more, try a time deposit. You can earn more interest but you can only withdraw the money after a certain period of time.
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