Banking Question

if a bank is offering a 5.25% APR for a 8 month cd - is that good?

Also, when do they add the interest? is it 5.25% every month or is it based on the total amount you put in it?

Hope that makes sense.

TIA

Re: Banking Question

Remember- Its 5.25% APR (ANNUAL) so you wont get a full 5.25% on your money because its only 8 months. You'd get a 3.5% return
for each $1,000 you would earn $35 over 8 months.

Its better than most savings accounts yield so yeah its good I guess.

I think its added in monthly.

Re: Banking Question

Thank you for the explanation!! That makes sense!

Re: Banking Question

you can find 5% liquid with Capital one online...so its an ok deal, depending if you need the $$ soon.

the above poster is correct...except remember its compounded -

so if you invest $1000, at 5.25%, after the first month you will have made $4.38. So the second month, you start with $1004.38, then get interest on that....

there are savings calculators on bankrate that can help!

Re: Banking Question

I think that's pretty good

Re: Banking Question

regular ING savings right now is in the mid 4%
i know citibank was offering 5% on regular savings in conjunctiion w/ a new checking account all done online.

Re: Banking Question

Try this:

http://www.statefarm.com/learning/calc/cdapycalc.asp

Our 6 month is the same rate.

Message edited 8/30/2006 4:52:29 PM.