I would like to open a savings account in one of "Big 5" banks in Canada. Many banks are offering so called "daily savings" accounts.
Not to name any names, let say I would like to open a savings account in the bank XYZ. Information on the bank website states that the interest on money calculated at the end of each business day and paid monthly. Thus, if I understand it correctly, the interest (0.05%) is multiplied by the amount of money in the account.
Say, I have deposited $10,000 in my account and not touching them.
So, every day
$10,000 x 0.05% = $5 of interest accrues.
Assuming a month has 4 weeks, 5 working days each, my monthly interest is
$5 x 5 x 4 = $100
For every $10,000 deposited in this savings account I should earn $100 of interest every month in this "daily savings" account? Am I understanding it correctly? I don't know why, but it seems overly generous.
I looked all over on the bank website, but cannot find information whether 0.05% is daily or annual interest. This is what worries me. I do suspect that this is an annual rate, but I hate that it is not stated clearly by the bank. Or maybe it is hidden somewhere in a fine print!
Would appreciate if anyone clarify. Thank you!