for questions that relate to interest. Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets.

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1answer
35 views

Do I have to pay taxes on PPF in USA?

I am going to work on H-1B in US for next 3 years. I am sure that I will return to India after 3 years and do not want to permanently settle in US. In order to invest money in India I am planning to ...
-1
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1answer
65 views

Average interest rate vs compound interest rate

(1) Taking an average of %profit (2) Is calculating %profit by (end-start/start)*100 (3) Is (2) divided by 10 periods My questions are; What is the REASON why (1) and (3) are different values? ...
0
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3answers
154 views

Is 6% too high to trade stocks on margin?

Lets assume I understand the risk of trading on margin and that I can lose the money. My question is if 6% is too high? I do have dividend paying stocks that could almost cover the monthly interest ...
14
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12answers
4k views

Why is paying mortgage interest considered by some to be beneficial?

When discussing buying a home I often hear people say they like having a mortgage because they get the benefit of writing off the interest. Am I misunderstanding something? My simple thought is if ...
1
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1answer
60 views

Should credit card refunds within the payment period (but after the statement date) be charged interest?

My wife signed up for a 0% balance transfer offer with BarclayCard (UK), and transferred around £1000. The 0% interest is always listed as a line item on the monthly statement. Each month she pays ...
4
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1answer
98 views

What is the logic behind peak interest rates for 390 days FDs in India?

Currently fixed deposit (FD) rates in India are around 9% p.a with various Indian banks. I have observed that there are tenure brackets which start from 7 days till 5 years. There is always a bracket ...
0
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1answer
63 views

Where to buy good corporate/goverment/treasury bonds?

I am non american citizen. I read a portion of Benjamin Grahams, "The Intelligent Investor" he suggests that one should always have a portion of ones savings in bonds. Specifically, he mentions SERIES ...
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3answers
84 views

Auto debit vs slight over-payment - which is better for a student loan?

I have a pair of student loans at 5.12% (the Sub and Unsub halves of a consolidation). My lender offers a 0.25% rate reduction if I sign-up or auto debit - but only if I terminate online billing. As ...
3
votes
1answer
69 views

Understanding Effective Annual Interest Rate concept

I am trying to understand the effective interest rate concept with an example. All I know about it is the following formula: EAR = (1+r/n)^n -1 , where n = number of periods r = stated interest rate ...
3
votes
1answer
78 views

Are UK cash ISA's cumulative?

I have opened a Cash ISA recently and I don't seem to understand how they calculate the ISA earnings. So as an example, suppose I have a cash ISA maxed out at £5,940 (I know this is going up in July ...
2
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2answers
153 views

Where should I park my rainy-day / emergency fund?[INDIA]

I was looking at options for where I can put my emergency fund. I came across these questions during my search - #1 and #2 - which are specifically for U.S. and Canada. I want to know what options ...
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1answer
85 views

Cash needed at low interest for one year. What kind of loan might be appropriate?

I need to borrow about $10k in cash and was wondering what would be the best way to do so(In which I do not have to pay a lot of interest). I need this money for exactly one year. My credit score is ...
2
votes
1answer
99 views

Interest on last month rent deposit

I am not sure if this applies to all of Canada, but in Ontario, when a tenant rents an apartment, the landlord is entitled to ask for a deposit up to the rent of one month. From the website of the ...
12
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4answers
2k views

Pros and Cons of Interest Only Loans

I currently have a home with an FHA loan which require me to make mortgage insurance payments for the next 4 years. I am considering a refinance and have came across the idea of interest only ...
9
votes
2answers
323 views

Frequency of investments to maximise returns (and minimise fees)

If I have a certain amount of money to invest regularly, how do I calculate the amount to let accumulate in my bank before I make that investment, assuming there is a fee associated with each ...
1
vote
1answer
74 views

Should I pay extra towards my mortgage or HELOC?

My first mortgage has a balance of $147k with 4.75% fixed interest rate. My home equity line of credit (HELOC) has a balance of $87k with prime minus 1.1%. I've been making about $50 extra payment ...
6
votes
4answers
1k views

What is the best safe way to earn most interest of 100k savings?

What is the best safe way to earn most interest of 100k savings? What is the safest way I can maximize my interest income on 100k savings? I want as little risk as possible
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1answer
58 views

Calculating cost of loan

|fee |interest(5% of 200) |total paying |% of original loan |200 |6 |10 |10+6 |8 (16/200*100) |effective loan |% of ...
0
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1answer
84 views

APR without principal repayment?

I've been trying to find out about this own my own but can't seem to work it out via search engines, loan/mortgage websites and excel. When I try to work out how much a loan costs, rates like APR ...
14
votes
4answers
3k views

Do banks give us interest even for the money that we only had briefly in our account?

My father has just deposited ₹95,000 in my savings bank account with Indian Bank that I have to pay as fees to my university. I was thinking of paying the fees 1-2 days later, as I will get interest ...
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2answers
76 views

Balancing an Interest Accrual Rate Between multiple loans

Tags: multiple student loans , balancing interest accruals , student loan help
3
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3answers
111 views

Given a certain yearly savings, how much can I spend on a capital improvement? NPV of future cash flow

I'm seeking a simple online calculator, or explicit instructions for a spreadsheet, for answering simple real-world scenarios like this: Our insurance company is offering a 30% discount on an ...
3
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2answers
688 views

Monthly/Annual Payments Calculation with percentage increase to equal exact dollar amount over exact specified period

I'm not sure if this is the right place to ask this kind of a question, but here it goes. I have the following information: A = Total amount needed B = Number of periods (monthly, 12 payments of ...
3
votes
1answer
172 views

Is it to my advantage to refinance with an LPMI option (Lender-Paid Mortgage Insurance)?

My fiance and I bought a house in April 2013 using a FHA loan, 30-year fixed. We only had to put down 3.5% so of course a good bit of our monthly payment is PMI. I got a call today from the same ...
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0answers
71 views

Are loans that charge a fixed interest amount based on original principal throughout the loan still used? If so Where?

Some loans charged interest on the total amount of the loan (at origination!) until the last payment is made--effectively doubling the interest charge on a loan which charges interest on the declining ...
4
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1answer
1k views

How is “Balance Subject To Interest Rate” calculated?

I was approved for a balance transfer of $2,500 to a card, and that month my statement looked like this: INTEREST CHARGES (APR 2013) ...
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2answers
278 views

Why are mortgage interest and taxes considered tax deductible?

I have trouble understanding the rationale behind why certain things are tax deductible while other things are not. For example, I understand that RRSP contributions are tax deductible because I am ...
8
votes
1answer
227 views

Is my financial plan for buying a house logically sound

All money is in NZD, all calculations done Weekly. Linked house is just example. House in North Shore, Auckland, New Zealand. $600K 30 year Mortgage with ASB, 430K loaned at 5.75% variable, (170K ...
5
votes
3answers
2k views

Why have U.S. bank interest rates been so low for the past few years?

I have some savings accounts in different banks and they all give 1.00% interest or less, and in many cases it is something ridiculous like $0.05 Would anyone be able to explain why this is ...
1
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1answer
550 views

How to calculate the proportion interest/principal of this fortnightly (bi-weekly) loan payment?

You would need to borrow $660,000 and your fortnightly payments would be: Reducing loan $2,299.61 given 5.75 variable interest rate How much of the $2300 fortnightly paid is interest, and how ...
0
votes
1answer
320 views

Help with calculation of interest on a security deposit on a rented house?

I know you answered a similar question on another post but I am in dire need of help. I was wondering if you could help me out with my security deposit calculations? We paid $1795 for our deposit in ...
0
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3answers
150 views

For most loans, do you pay interest on the principal or amount remaining?

For example, if I take out a personal loan from the bank for 1k for 1 year with 10% interest, I would pay $100 in interest. What would happen if I paid back $900 on the first day of the loan, and then ...
1
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1answer
8k views

India Income Tax: Need to Pay Tax on Savings Account Interest for FY 2012-13 Or Not?

As per Indian Income Tax rules and regulations, for the Savings Account Interest accrued during the period of April 2012 to March 2013, do I need to pay any tax if it is less than Rs.10000? Or is it ...
5
votes
2answers
128 views

Does there exist a kind of loan where no part of principal is paid, while interest is still paid?

I know that when debt is being re-paid, one pays interests along with repayment of some parts of debt principal. However, I am wondering a case where no part of debt principal is re-paid while ...
6
votes
3answers
151 views

Loan-with-PMI vs other loan: which is best to pay down

I would like to understand whether it is better to make extra payments on a home loan that includes PMI (Private Mortgage Insurance) or a different (high interest) loan. Typically, when deciding ...
1
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2answers
119 views

Forex, trading “currencies” or trading “relations”?

I'm newbie in Forex and have a simple question, I guess. Disregarding leverage and things alike, I would like to know what's the difference between opening a position in Forex on a pair through a ...
6
votes
1answer
325 views

Any Canadian tax shelter for lending to friends or family?

I am considering helping friends or family out of credit card debt, which is costing them ~18% per year by giving them a loan at more like ~3% (kind of like consolidated credit/debt). Is there ...
9
votes
5answers
399 views

Paying Off Debt: When CC Companies Won't Reduce APR

For the past two years I've been living, for the first time, under the weighty, grey cloud of credit card debt. Foolish use of personal credit cards to fund asset purchases for an LLC have resulted in ...
14
votes
7answers
11k views

Why do banks want you to pay off interest before principal?

When you take out a traditional mortgage the first payment you make to a bank pays off mostly interest and then later payments start paying off principal. What is the reason for this? Is it just a ...
1
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3answers
3k views

Why does the principal/interest applied to my balance fluctuate in spite of making payments on-time?

In my first payment on 6/03/2011, the principal applied to my balance was $261.11 and the interest was $221.64. As I kept making the payment on-time, the principal applied to my balance kept ...
4
votes
1answer
43 views

U.S. Bonds Taxed Interest and Current Value

Series EE Bond just matured and I cashed it in. The current value that I received in cash was only a little more than the original face value. However, the interest I am paying taxes on is half the ...
5
votes
2answers
377 views

Interest on security deposits paid to landlords, in Michigan?

Does the state of Michigan require landlords to put security deposits in interest bearing financial institutions?
2
votes
1answer
169 views

How do I calculate the interest on my deposits to my landlord?

I was renting from this company called harbor house builders. I started renting from them in 2009 and at that time I was renting an apartment at 650 a month so I put 650 for rent and 650 for deposit. ...
2
votes
2answers
572 views

Can the interest on a cash out refinance for a rental property be claimed as an expense?

I currently have my home all paid off. I am thinking about purchasing another property as my primary home, and renting out my paid off current home. My question is should I: Get a regular loan for ...
2
votes
1answer
112 views

How to figure out interest received from 'cash and cash equivalents' in a balance sheet?

Looking at APPL's balance sheet, I can see that they have a few million as cash and cash equivalents. I want to know more about cash and cash equivalents. I understand that cash and cash ...
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2answers
124 views

Please explain short interest; specifically, why is it called “interest”?

I understand that short interest is the number of shares that is currently short sold. A high short interest indicates that the share price is expected to fall. All good, but what is the word ...
2
votes
2answers
576 views

What is the effective interest rate on a credit card that offers 0% interest with a 4% balance transfer fee?

I'm about to do a balance transfer that has a fee of 4%. It gives me 0% interest for 14 months. Is it just a straight calculation of 4% for the year or is there another calculation that I need to ...
1
vote
1answer
189 views

How can Mastercard's interest rate be more in Norway than in Finland?

I select Mastercard because it is easy to compare credits cards between the following countries. I am looking the prices of Mastercard in Finland, Estonia and Norway. All banks have the same amount ...
2
votes
3answers
209 views

Interest rate question

I'm having a little trouble figuring this out. Suppose I took out a loan with the following terms: Loan Amount: 1,000 Interest Rate (APR): 10% Compound Frequency: Monthly (12 compounding periods) ...
2
votes
1answer
211 views

Why doesn't the government pay interest on tax withholding returned via a refund?

When the US government pays you your tax refund, it doesn't include any sort of interest payment for what is essentially a loan to the government. Why doesn't the government pay interest?