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Which is a type of savings account that is designed to accrue interest for a specific period of time?
certificate of deposit
If you defer your student loan does it accrue interest while you are at school?
the deferment period is the period when the borrower makes no payments and the loan accrues no interest
What is thirty days same as cash?
It means that you have a 30 day period to pay for a purchase before any interest or finance charges start to accrue.
How many days does a person have to make a payment for their purchases on a credit card bill before interest starts to accrue?
IF you can pay the outstanding balance before the end of the sue date - you pay no interest. This period is usually 28 days from the date of the purchase.
What are interest free credit cards?
Interest free credit cards are some sort of deal credit cards make to get you to use their credit cards. Interest is cash that builds up on your debt. These interest free credit cards eliminates that for a few months.
Which of these is a type of savings account that is designed to accrue interest for a specific period of time?
certificate of deposit
Which is a type of savings account that is designed to accrue interest for a specific period of time?
certificate of deposit
If you defer your student loan does it accrue interest while you are at school?
the deferment period is the period when the borrower makes no payments and the loan accrues no interest
What is thirty days same as cash?
It means that you have a 30 day period to pay for a purchase before any interest or finance charges start to accrue.
How many days does a person have to make a payment for their purchases on a credit card bill before interest starts to accrue?
IF you can pay the outstanding balance before the end of the sue date - you pay no interest. This period is usually 28 days from the date of the purchase.
What is a fixed percentage of the principal paid over a specific period of time?
simple interest
What are interest free credit cards?
Interest free credit cards are some sort of deal credit cards make to get you to use their credit cards. Interest is cash that builds up on your debt. These interest free credit cards eliminates that for a few months.
What kind of interest is paid on the deposit plus accumulated interest from period to period?
A Compound interest !
How calculated effective yield?
Effective yield is calculated by taking into account the impact of compounding interest on an investment. It is the total return on an investment over a specific period, factoring in both interest payments and the effects of compounding. The formula for effective yield is: Effective Yield = (1 + (Nominal Interest Rate / Compounding Period))^Compounding Period - 1.
Why do banks pay their customers interest?
Fact is simple . . . What you are really doing is loaning the bank your money to make money off of so in return for the use of your money - the bank pays you a fee - that we call interest - which is usually variable over time but can be fixed for a term or a period of time and/or the interest rate guaranteed over this time period. Quite often guaranteed interest rates on money loaned to the bank are called Guaranteed Investment Certificates or GIC's wherein the interest paid to the bank customer is guaranteed at a specific rate of interest or a fee over a period of time so that the capital or amount of money invested will be paid back in a total amount of the capital and the interest earned. However, one can find banks that will pay back the interest on a annual or monthly basis at a specific guaranteed interest rate over a specific period of time and return the original invested capital at the maturity date or the end of the agreed upon time period that the money would be lent to the bank for. Traditionally the banks in turn, loan out the same money given to them to 'others' for a specific period of time at an interest rate of 3% more than what was paid to the investor - this is commonly called 'the spread' in the banking industry.
Is there a need to open an account for issuing a certificate of deposit?
Yes. A "certificate of deposit" is a type of savings account where you deposit a minimum amount of money for a minimum amount of time (during which time you cannot make any withdrawals) to accrue a certain interest rate. Usually the higher the dollar amount and the longer the time period, the higher the interest rate.
What is meant by the term compound interest?
Compound interest means that the amount of interest earned during a period increases the principal, which is then larger for the next interest period.
