About how much interest will my $450 earn in a year?
I just deposited $450 dollars into a Bank of America savings account and am wondering about what the interest rate on that is. (Sorry that that is all the information I can provide I’m only 14 and I asked my parents but they didn’t seem to know crap)
It looks like Bank of America savings accounts pay the (extremely) small interest rate of 0.20 percent APY. That means you’d earn 1/5 of 1 percent interest per year — or about 90 cents.
In my opinion, your parents should help you set up a savings account at a bank that pays better rates. For example, ING Direct (an online bank) is currently paying 3.0 percent on their savings accounts, which have NO fees and NO minimum requirements. If you deposit your money into one of their 12-month CD accounts, you can earn 4.25 percent APY. That’s over $19 a year on your $450 deposit. Quite a difference.
Mortgage Savings Account – www.maxhouse.com