Im 22 an have been able to save almost 15,000 dollars and a friend had mentioned that I can grow it with one of these accounts. They told me that it adds to my savings each month and and adds more the next month on top of those savings. For example in one month its 15,547 then in the second it will be 16,114 so at that rate at after a full year I’d have 23,055 is that correct? This is just letting it sit there and I gain
Considering opening a Goldman Sachs 3.65% online savings account and curious in how it works
byu/HurryPuzzleheaded364 ininvesting
Posted by HurryPuzzleheaded364
9 Comments
It’s not 3.65% per payment. It’s 3.65% per year. 15,000 will generate about $547 for the entire year. Each month is roughly rate/12.
Right idea, but unfortunately it doesn’t go that quickly. At 3.65% you would have approximately that 15,547 after a year (it would be a little higher than that with monthly compounding but pretty close). You do get interest monthly and it does compound on itself like you said but 3.65% is an annual rate.
That said, it’s better than not making interest in a checking account for sure
The interest rate is annual not monthly so you have to divide 3.65% by 12. The means that $15,000 will return $45.63 in the first month not $547.50.
You can just open any savings account, it doesn’t have to be Goldman’s.
If you have $1,000 you’d have $1,036 at the end of the year. You don’t get it every month.
Ally Bank is decent. Mobile friendly, has checking and savings. So you can have your spending and savings in one place. But any bank offers this. (US based info)
Thats an annual percentage. You’ll end up with $15,547 after a year.
If it was that easy why would anyone work?
What you’re talking about is 53% in a year
I understand now thanks guys this does seem more realistic
Hey if you didn’t read the first ten comments on APY, just read the first ten comments in APY.
APY/12 = monthly interest %
Account balance x monthly interest % = monthly interest payment
Monthly interest payment + Account balance = What you have after not touching money for one month.
This is a great holding place for your money! If you start building an emergency fund or want to save up to start investing, this is a good place to do it. When you open an investment account, you may (with risk involved and no guarantee) get better returns with some ETFs (market avg 10% annual return, adjusted to 7% after inflation). Just know that interest can be taxed at income (i think after it exceeds $1,000). Just something to check with a tax guy.