Savings account interest rate question

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SallyTimm

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Savings account interest rate question

Post by SallyTimm » Tue Jun 13, 22:53 2017

Ugh! I'm confused.

If my bank is saying my savings account will have an interest rate of 0.01% is that the same as saying it will have an interest rate of 1%? Meaning, is the 0.01% the decimal value that is calculated against the account balance? Or, does it mean that it actually has a decimal value of 0.001 to calculate against the balance of the account?

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DarkOne
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Re: Savings account interest rate question

Post by DarkOne » Wed Jun 14, 4:12 2017

Neither.
0.01%=0.0001 (and I was surprised to see this is an *actual* rate offered by some banks.)
If, on the other hand, your post had a typo and you meant the bank is advertising Gross% of 0.1, then that would be 0.001.
"Winston Churchill once said 'The eyes are the windows of your face.' " -A man who's very scared of plants.

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