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savings account has not increased in years

New Contributor

savings account has not increased in years

My mom has $5 in her savings account but she put this in her account in 2003 and it has not increased at all. I thought in a savings the amount would have increased especially it being 14 years. everytime she receives statement from credit union it always says $5 and has shown that for years. the dividend rate says .25%

EX: 701 TU: 707 EQ:695
Message 1 of 5
4 REPLIES
Established Contributor

Re: savings account has not increased in years

Very simple, most (maybe all) banks require a $0.01 minimum dividend to be paid. For a 0.25% APY you need $48 to receive $0.01 in a month; a $5 balance is $0.001/month
I hope I explained it clearly
Scores as of5/20/16: EQ 800;TU 769; EX 793
Last CC app: 5/16.
Mortgage Refi 3/16
Message 2 of 5
Established Contributor

Re: savings account has not increased in years

I agree with dragontears.  Also, check your bank.  Some places required at least a $100 minimum balance in order to earn interest.


Starting Score: Eq: 662 Tu: 532 (03/02/2011) CH7BK 01/12/2009 Discharge
Current Score: Eq: 712 (02/03/2017) Tu: 717 (04/03/2013)
Goal Score: Eq: 760 Tu: 760

Wallet: PenFed Power Cash 25k | AMEX Blue Cash (AU) 49.5k | Cap One QSMC 26.5k | AMEX Platinum NPSL | LFCU Visa 10k
Message 3 of 5
New Contributor

Re: savings account has not increased in years

the minimum amount is $5 for the savings

EX: 701 TU: 707 EQ:695
Message 4 of 5
Regular Contributor

Re: savings account has not increased in years


Zeno wrote:

the minimum amount is $5 for the savings


That might be the minimum necessary for the account to exist, but it is not likely the minimum amount required for interest to be earned. 

 

As the others stated, I would expect the minimum balance necessary for interest to be earned to be $50-100.  It allows them to save on not only interest paid, but computing power and man-hours, calculating and reviewing tons of accounts with tiny amounts left in them.


Message 5 of 5