Online savings account?

Question

So I just recently opened up a online savings account with washington mutual because they were offering a 3.75apy, so how much interest will I gain? Is it every month or by the end of the year?

Answer 1

The A in APY stands for *annual*. You'll earn 3.75 percent interest in one year on your money.

They may add the interest to your account quarterly or monthly, but the 3.75 percent is the annual amount you'll earn. If they add it monthly, it would be about 0.25 percent per month; quarterly, less than 1 percent per quarter.

Answer 2

The interest in most savings accounts is compounded monthly. This means that to figure out how much interest you will be paid, take your annual interest and divide it by 100 to convert it to a decimal, then divide it by 12 to make it a monthly interest rate. Multiply this by your balance.

For example, say you deposited $200 into your savings account:

(3.75/100)/12 = 0.003125

0.003125 * 200 = 0.625

Therefore you earned $0.62 of interest that month. (Banks usually round down to the nearest cent) Your new balance is $200.62, so you would use that to calculate next month's new balance.

Answer 3

I believe you get credit for your interest at the end of the month based on a daily average balance.

Use the calculator on http://www.bankaround.com/education/calc... to calculate how much interest you are likely to earn. Makes it easier.

Answer 4

Balance Tiers   Interest Rate   Annual Percentage Yield (APY)

$0 - $9,999--------------3.69% ----------------------                    3.75%

$10,000+-----------------3.69% ----------------------                    3.75%

check this link:https://online.wamu.com/apply/startappli...

if you go to GETTING STARTED for the online savings application, it shows the actual monthly interest rate.

APY is your annual percentage yield but you earn a monthly interest of 3.69%. so it is still a good interest comparable to a cd account. just make sure account is linked to a free checking with wamu to get that APY and interest rate