Question about ING Direct savings account

[Nocturnal]

If I put $100 every month into my account how much interest would I earn in a year?

 

[The Stigenator]

present rate is 3.30% for savings.

100x12 = 1200 * .033 = ~40 dollars.. so total 1240 end of year.

okay that's not the total, ineed to do regression on it an im sleepy.. it will be more than 40 bucks in interest.

 

[rezinn]

Wouldn't you have to take into account that you're earning interest on 100 bucks the first month, 200 the second, etc. So you'd actually earn more like 20 dollars, depending on compounding and whatever other factors I don't know about.

 

[NeoPTLD]

It's 3.3% right now..
You earn 0.00275% interest on principal at each compouding period and $100 deposit + earned interest is added to principal.

end of month 1=$100.28+100
new balance=$200.28
end of month 2=$200.83+100
and so forth

 

[HonkeyDonk]

Calculator

Use this.


Current Savings Balance $0
Additional Monthly Investment $100
Number of Months to Save 12
Rate of Return 3.3%

 

[HonkeyDonk]

Originally posted by: TheGoodGuy
present rate is 3.30% for savings.

100x12 = 1200 * .033 = ~40 dollars.. so total 1240 end of year.

okay that's not the total, ineed to do regression on it an im sleepy.. it will be more than 40 bucks in interest.

No, it will definitely be less than $40.