Wednesday, September 14, 2011

How come the compound interest keep changing like every day?

the interest of a money market account.

like yesterday it was %1.44, today its %1.277/?!?!?!?!

and mine change like almost everyday!!

why is that??

isnt suppose to change ONLY once a month??

if it change everyday then how do they calculate the interest u earn @ the end of the month??

thank u very much/How come the compound interest keep changing like every day?Money market rates are based on the rates of return that banks can get when they invest your money. Some banks may offer higher rates to attract investors, but these rates are not guaranteed and, as you've seen, can and do change frequently. To lock in an interest rate, you would need to invest in a CD which usually means you cannot access your money until the CD expires. But you tend to get a higher rate with a CD because you are promising the bank that you won't withdraw your money until the CD expires.How come the compound interest keep changing like every day?I believe they average the daily rate against your average balance.How come the compound interest keep changing like every day?it like floats and gets reset each day