#1 - no ... google future value of an ordinary annuity - and us a calculator or function in excel.
Hello, I'm about to open a savings account and am not sure how the interest works. I'm not very experienced with this stuff at all. I was hoping one of you could help me with this. :)
The bank I'd like to open a savings account with is Barclay's. They offer something called a dream account, which has a few perks. Here is the link to it: https://www.banking.barclaysus.com/dream-account.html
And here are my questions:
1. The APY is .95%. So if I were to open with $100, then put in an additional $100 each month for a year, I would earn $12.35 in interest (for a total of $1312.35 in my account). Is this correct? If not then why?
2. You gain 2.5% interest on your already accrued interest within a 6 month period if you make consecutive deposits into your account each month for those 6 months. So, just to make sure I have this right: If I open with $100, then deposit $100 for the next 5 months, I'll have $600 in my account. So then how do I determine the interest already on my account from the APY? Can I just halve the APY and apply it to that $600? Then after that, do I apply the 2.5% to only that accrued interest, or to the interest+the principal amount in my account?
I appreciate your help with these questions. As I said, I have no experience with this stuff. I just want to be sure I'm understanding this correctly. Thank you very much!
