Financial Information
how much would I gain if I opened a passbook savings account with $1,000.00 at $0.75, for 1 month?
Question : how much would I gain if I opened a passbook savings account with ,000.00 at .75, for 1 month?
passbook savings account
Best answer:
Answer by clogher
Do you mean 0.75% interest? If so, then follow me on this.
$ 1000 earns 0.75% in a year. That’s $ 7.50. Divided by 12 that’s 63 cents.
You would not gain at all, you would incur a net loss. The “transaction cost” would exceed the interest income for one month. Such costs could include:
– opportunity cost of your time
– transportation to and from the bank
– bank fees (including penalty fee for closing the savings account after one month)