I need some help from some people who understand finances better than I do, am I getting ripped off of a cent a month interest by my bank? (earth shattering importance, of course)
Imagine the following (hypothetical) savings account earning 1% annual interest. 1% annual is (0.01 / 365) 0.000027397260274 daily interest. So for every day, you multiply the amount of money you have accruing interest by that daily amount… add the days together and you’ve got your interest amount for that length of days… when your money amount changes (when you add to it or reduce it) your calculations change, so you need to reflect that… a basic table is displayed below…
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Unfortunatly, my bank reported $2.53 of interest for this month, instead of $2.55, which is what I show… tried changing the number of days around, and never got anything close to this figure.
So, do I even ask my bank? thoughts?
It’s possible they calculate it at a different rate.
If you really want to know, the best way I’ve found is calling them up and asking careful, persistent questions (that don’t feel like I’m attacking the company’s person or just trying to be an ass but genuinely don’t understand). The trick is to find someone reasonable, who’s willing to take the time. And not do it when you’re stressed and have been working Waaay too much.
On the topic of 2 cents, you may appreciate that attached to the 17th request for money from our undergrad she finally got fed up enough to send it back w/ the note: my 2 cents, stop wasting paper and 2 pennys taped to it.
-T:)