BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Annually
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Quarterly
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Monthly
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Daily
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Detailed explanation-1: -And while interest can be compounded at any frequency determined by a financial institution, the compounding schedule for savings and money market accounts at banks are often daily. The interest on certificates of deposit (CDs) may be compounded daily, monthly or semiannually.
Detailed explanation-2: -If you deposit even a small amount of money into a savings account, compounded interest can do the work for you and make your money grow exponentially faster than it would earning simple interest.
Detailed explanation-3: -Certificates of deposit (CDs) and money market accounts also typically pay compound interest, and some compound daily, giving you an even higher yield. While most CD rates are locked in for the CD’s term, money market rates are variable and can change at any time.