Interest Confusion

jake619 · ‎11-13-2012

Regarding banking, if I can get a 1.0% savings account, why would I put money in a 12 month CD that yields similar interest? What am I missing here? For that matter, what's the purpose of a lower-APR CD? That seems even crazier but I could be missing something.


GangnamFICO wrote:
Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.

Minor vulgarity edit --Rev

awal · ‎10-25-2010

Other than the interest rate being guaranteed for the term, I've got nothing.

Most times when I see savings accounts with APRs that are competitive to CDs its for a specified tier (amount of money) - which honestly sounds a lot like a CD without the early withdrawal penalty.

jake619 · ‎11-13-2012

Yeah, I understand the locked in APR. But Barclays online savings is 1.0% w/ no fee/no min. Ally is right behind that and so is AMEX for that matter. Weird. Maybe in a former time there was an advantage over savings accounts, but today I can't see locking up the money for the same APR.


GangnamFICO wrote:
Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.

Minor vulgarity edit --Rev

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Interest Confusion

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