Can anyone explain the interest rates on a savings account?

I want to open a savings account. I'm not an idiot (I think), but I can't make head or tail of this APY stuff. Is it possible that banks only give .05% interest per year? Surely this can't be right. I'd appreciate any and all advice!

3 Answers

Relevance
  • ?
    Lv 7
    8 years ago
    Favorite Answer

    The APR is the interest you would earn on your money if you left your money in for an entire year and you didn't add or subtract any money. Interest rates these days are very low. You have to look at fees as well as interest. A particular bank or credit union can pay high interest, but if the fees that bank or credit union charges exceeds the interest it pays, then you've lost money. ►All institutions are required to print a schedule of fees. Read each schedule carefully, especially the small print and the footnotes. ◄

    I suggest that you visit several banks and credit unions and speak to the customer service personnel. Bring a written list of questions which are important to YOU about their fees and about the amount of interest they pay on their accounts. Find out the features and charges of each of their accounts. Find. Make sure you get everything in writing. Do not accept anything the customer service person tells you verbally.

  • 4 years ago

    In India incredibly a lot all prices of interest are deregulated.Saving monetary corporation debts is between the parts in which interest price is regulatory and immediately ahead between all the banks-public or deepest.interest at 3.5% is payable 0.5 each year on minimum stability kept by utilising the accountholder between 10th day of the month to the most suitable day of the month.

  • 8 years ago

    It depends entirely on which bank you go to. My bank is Valley Credit Union, and I get 3.45% but I also might live in a different state as you. Just ask as many questions as it takes to be sure and shop around. This is very important.

    Source(s): My life..
Still have questions? Get your answers by asking now.