I have a CIBC premium growth account that offers a "0.20% interest rate on every dollar you save calculated daily and paid monthly". I'm just curious as to what the 20% Premium Growth interest rate exactly entails. From what I gather, it means that 20% of my closing balance each day will be added up over the course of a month and then given once the month is over.
For example, if I have $500 in my account throughout an entire month and earn $100 daily as a result of the 20 percent interest rate. Would that mean I earn $3000 as a result of the interest (30 day month) or am I gravely mistaken (which I'm suspecting)? Because if that's the case, I could accumulate large sums of money very quickly if my balance is in the thousands or even higher.
For reference, here is the account description page. https://www.cibc.com/ca/chequing-savings/premium-growth-acct.html