BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?
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Compounding 1 time per year
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Compounding quarterly
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Compounding monthly
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Compouding daily
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Explanation:
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.
There is 1 question to complete.