Newb Savings account question about interest (ING Direct)

[jinduy]

The 2.25% interest caught my eye...

so how does this work?

If i put $1000 in, will I get $22.50 worth of interest in one month? or is that in one year?

 

[Maximus96]

its yearly

 

[jinduy]

Originally posted by: zaku
its yearly

grah...

 

[GigaCluster]

More information.

 

[BatmanNate]

It's compounded annually, but pays out monthly. So with 1k, you'd be looking at a little under $2/month.

 

[DaveSimmons]

If you put $12,000 in, then you'll get (a bit less than) $22.50 each month 🙂

APY = annual percentage yield = growth if you leave the money in for one year, including all interest earned during the year. ING pays monthly, a little less than 1/12 of 2.25%

 

[jinduy]

You can make deposits or withdraw funds by transferring money online, through our Interactive Phone Service, or by speaking with an ING DIRECT Sales Associate.

is there any cost to withdrawing my money to transfer it over to my checking account at bank of america?

 

[simms]

Originally posted by: jinduy
The 2.25% interest caught my eye...

so how does this work?

If i put $1000 in, will I get $22.50 worth of interest in one month? or is that in one year?

I wish it was one month. 🙁

 

[jinduy]

Originally posted by: DaveSimmons
If you put $12,000 in, then you'll get (a bit less than) $22.50 each month 🙂

APY = annual percentage yield = growth if you leave the money in for one year, including all interest earned during the year. ING pays monthly, a little less than 1/12 of 2.25%

that's not a bad idea, but that's allocating too much of my money 🙁 . i'm looking into mutual funds (IRA first, then taxable). then having ING store a bit of my cash as an emergency fund.

 

[jinduy]

Originally posted by: jinduy
You can make deposits or withdraw funds by transferring money online, through our Interactive Phone Service, or by speaking with an ING DIRECT Sales Associate.

is there any cost to withdrawing my money to transfer it over to my checking account at bank of america?

up for my last question

 

[RossMAN]

Originally posted by: jinduy
You can make deposits or withdraw funds by transferring money online, through our Interactive Phone Service, or by speaking with an ING DIRECT Sales Associate.

is there any cost to withdrawing my money to transfer it over to my checking account at bank of america?

$0

 

[DaveSimmons]

Originally posted by: jinduy
You can make deposits or withdraw funds by transferring money online, through our Interactive Phone Service, or by speaking with an ING DIRECT Sales Associate.

is there any cost to withdrawing my money to transfer it over to my checking account at bank of america?

No, direct transfers to and from the bank account that you linked to the ING savings account are free.

FYI, for info on mutual funds: www.fool.com. I usually recommend vanguard.com and their VFINX S&P 500 index mutual fund as a good starting fund for people to buy and hold.

 

[tk149]

Originally posted by: jinduy
You can make deposits or withdraw funds by transferring money online, through our Interactive Phone Service, or by speaking with an ING DIRECT Sales Associate.

is there any cost to withdrawing my money to transfer it over to my checking account at bank of america?

Free, but it takes 2-3 days usually.