Skip to main content
This Board Has Moved

This board has been migrated to our new platform! Check out the new home page at or click below to go directly to the new Board on the new site.

Go to the New Site
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Greetings SF,

Amount in the Account = $10.00
Anual Interest rate = %3.80
Current Interest Rate = %3.735

One, I'm inexperienced in all things monetary so HELP! :)

I'd use a simple interest calculation to figure out how much I'd gain in interest over a single months period right? aka
AMOUNT * RATE = interest gained?

No, the Current Interest Rate is still an annual rate. Divided by 12 should yield a month rate which is 0.31125.

Thus, to compute one month's interest would be as follows:

$10 * .0031125 = .03125 which is a little over 3 cents.

I think I'm either using the wrong equation, or I'm forgetting to consider something.

You're forgetting that even the Current Interest Rate is still an annual rate. the 3.8% is the annual Yield which factors in compounding.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.