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How is interest paid?

Updated: 9/17/2023
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12y ago

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Interest is paid on an amount that you have with a financial institution. The will give you an APR or Annual Percentage Rate, on such deposits into the account. What ever that number divide by 12 months in a year and you will see a monthly interest payment that the banks deposit.

So if you had a $100USD and interest was 1.00%APR you would receive about eight cents every month.

Interest is paid on deposits and withdrawals averaged in the banking cycle.

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12y ago
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