ATTN: Accountants! I think my bank is screwing me :( help!

[Kroze]

Is my bank screwing with me? i mean seriously. I opened a CD account with a 5 years term (60months) @ 4.24% interest. I have the interest add to the original amount every month but yet, my month to month interest has been the freaking same for the last 9 months! shouldn't it be more each month since I added the interest i earned to the original amount?



Transactions from Feb 21, 2004 to Dec 21, 2004

Date Description Amount



Mar 12, 2004 INT EARNED CR $30.40

Apr 12, 2004 INT EARNED CR $32.61

May 12, 2004 INT EARNED CR $31.66

Jun 12, 2004 INT EARNED CR $32.84

Jul 12, 2004 INT EARNED CR $31.89

Aug 12, 2004 INT EARNED CR $33.07

Sep 12, 2004 INT EARNED CR $33.19

Oct 12, 2004 INT EARNED CR $32.23

Nov 12, 2004 INT EARNED CR $33.42

Dec 12, 2004 INT EARNED CR $32.46




i get my interest dividend every month on the 12.


So from the 12 of each month to the next, i get interest. I know that some month have 30 days and some have 31. but how come my interest dividend on month 10 is still the same/lower as on the first month of dividend payout?>??

I i've gotten over $200 from dividend compounded into my original CD. Shouldn't the interest on the payout #10 be somewhat more than the first payout???

 

[Toastedlightly]

so they do monthy compounding, or you get a monthly report w/ yearly compounding?

 

[RightWinga]

Ummm....compounding $30 won't make a different each month.

You are forgetting some months have 30 days, others 31 days. And as you can see there is a clear uptrend in the payments.

 

[Toastedlightly]

monthy is still monthy

if i remember right (from math class, so don't hold this against me) the formula is P(1+(r/c))^CT

P is initial, r is interst rate (as a decimal), C is the compounded rate (12 for monthy, 4 for quarterly) and T is time.

 

[Nuriko]

Wait a sec, the amount you are receiving as interest has changed a bit month to month. Part of the differences is because of the number of days in each month, like the amount paid out in nov for oct (which has 31 days) is higher than the nov check (which only had 30 days), paid in dec. And it does look like the additional principle (the interest that is added back in) has changed the payment amount, if only by a few (about 23) cents each time.