The College Investor

Millennial Personal Finance and Investing Blog

Home » Investing Tip #228: Compare the Effective Annual Rate on Bank Deposits

Investing Tip #228: Compare the Effective Annual Rate on Bank Deposits

Last Updated on Leave a Comment
This article contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.

Share
Pin1
Share
Email
WhatsApp
Shares 19

Compare the effective annual rate on bank depositsInterest rates are generally quoted as annual interest rates. Some banks compound or pay interest on a monthly, quarterly or half-yearly basis.

If you take into consideration the effect of periodicity, the effective annual rate works higher than the quoted annual interest rate. While investing, compare the effective annual rate on bank deposits.

If you want to learn more check out these resources:

Share
Pin1
Share
Email
WhatsApp
Shares 19

Filed Under: Daily Investing Tip Tagged With: , , ,
Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.

Start Saving With These Offers

Leave a Reply

Your email address will not be published. Required fields are marked *

19 Shares
Tweet18
Share
Pin1
Share
Email
WhatsApp