Will Bueché

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Posted in Personal by Will on Thursday, September 11th, 2008 ~ 2pm

Well I am a lot less excited about the higher interest rates for savings now that I understand that the rate is yearly, not monthly. Sure, banks give you interest each month, but the rate they state is a yearly interest rate. So, say you have $1,000 in savings and the interest rate is 2 percent. You’d expect you’d be getting 2 percent of $1,000 each month, i.e. 20 bucks a month, right? But you won’t. You’d get closer to a dollar and change each month. After a year, it would add up to 20 bucks.

So it is a lot worse than I’d hoped. I have at least gotten the most out of what exists. It is just that what exists is terrible.

Yes, I was THAT optimistic that I’d actually be getting enough interest to actually buy an expensive sandwich each month. So I am naive.

I have at least ended up with a better bank for the majority of my savings.

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