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savings account has not increased in years

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Zeno
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:717 EQ: 734 TU: 721
Message 1 of 5
4 REPLIES 4
dragontears
Senior 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
Message 2 of 5
Tazman81
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.


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Message 3 of 5
Zeno
Contributor

Re: savings account has not increased in years

the minimum amount is $5 for the savings

Ex:717 EQ: 734 TU: 721
Message 4 of 5
Glen_M
Frequent 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
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