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# Questions tagged [interest]

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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170 views

### Does Gold Pay Interest In Negative Rates?

From my SO the other night: Gold pays interest when there's negative rates. If someone holds gold, they have to store it in a manner that will cost (money or time) and if someone holds gold in a ...
645 views

### How do I prevent my credit card interest from capitalizing?

I have a fairly standard point-rewards Visa credit card - I want to keep the interest on it from capitalizing, so whenever I make a purchase of over \$50, or feel like I've made a large number of ...
401 views

### What to do with this cash- pay off ONE card, or pay down a few?

I've got a \$5k payment coming through with about \$12k in CC debt, over 4 cards. 1 card is at \$3000 (total line is \$4k), 14.8% interest rate, another at \$3450(total line is 4.5k), 19.3% interest rate, ...
73 views

### Time given future value of reoccurring deposit

I've recently come across the follow formula for calculating future value with reoccurring deposits formula. However, I have been unable to solve for t. I essentially want to find how long it will ...
486 views

### What type of an account to store emergency fund? [duplicate]

I'm working on building up my emergency fund. I put the money into an Ally online savings account yielding 1% interest. Would it be wise to put the money somewhere else that gives a higher rate of ...
58 views

### Interest on American dollars in Australian bank account

I have American dollars in an Australian bank account, which doesn't accrue any interest. Is there a way of getting interest on it?
125 views

### How to handle fee for a balance transfer?

To save some money on interest, last week I transferred a balance of \$17,500 from my student loan account to my credit card for 0% APR for 18 months and a 2% transfer fee. The transfer fee (\$350) ...
116 views

### How does payment of interest work when an account has a maximum balance?

I am considering opening a new savings account with the building society with which I have my current account. (For completeness, I am in the UK, the building society is Nationwide, and the savings ...
4k views

### Paying off a loan with a loan to get a better interest rate

I've never had credit or a loan till recently when I bought a new car. This has recently given me a much better credit rating after having the loan for a year with 5 years to go and 2 credit cards ...
6k views

### Loan repayment calculation and monthly compounding interest problem

I need to write a mock up application that returns a quote to potential borrowers. The specification says that "The monthly and total repayment should use monthly compounding interest". Program ...
275 views

### What is the best way to increase the earned money staying in US for an NRI?

Im living in US from last 1 year due to work assignment and will be here for another 3-4 years. What is the best way to earn interest on earned money? Shall I send all earned money to India account ...
151 views

### Borrowing money for investment

What do you consider the best way to: Borrow money from private investors against a fixed interest rate Use it to trade, yielding a higher return than the interest rate Pay off the investors with ...
2k views

### “Simple interest rate of 0.10%” corresponds to “APY of 2.54%-5.00%”… how?

This checking account says Balances above \$5,000 earn a simple interest rate of 0.10%, with a corresponding APY of 2.54%-5.00% APY. I don't understand how a simple interest rate that is a fixed ...
9k views

### Do I pay a zero % loan before another to clear both loans faster?

I have \$11,000 to put toward one of my three loans. I think I should pay off the 0% car loan and then in two months it will be zero and I can apply that \$635 to the 2.5 % car loan and pay it down ...
64 views

### How to safely earn interest on business profits (UK) [closed]

I have a good sized amount of money in a UK (Barclays) business bank account earning exactly zero interest. I'd be happy even to earn 1% interest on that money so long as it was totally safe, but I ...
221 views

### Is it better to hold cash in a mortgage offest or term deposit account long term?

I am refinancing a variable rate mortgage (current rates are low and expected to fall further in the next 12 months - currently 4.25%). I have a cash sum equivalent to about 20% of the full loan ...
148 views

### Handling loan on flat to rent

I intend to buy 2 room flat and rent it. Flat costs 240k and I have 70k in cash. I expect to get paid 2k per month from renting flat (1k per room). Bank requires my minimal contribution of 10% of flat ...
136 views

### How to get interest earned from start of repayment to a specific date on a declining balance?

I need a formula in getting the interest earned from start of payment of my loan to a specific date. I know the formula for the current due interest, which my company have given me in excel: days = ...
161 views

### How to calculate interest gained by paying off credit card right before the due date and not earlier?

By not paying off the credit card statement amount right after it is generated but closer to the due date, the same funds can be in a savings account generating interest. I'd like to know precisely ...
32k 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 ...
1k 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 ...
610 views

### Inflation adjusted total formula for cost of mortgage

True cost of a mortgage when considering inflation has an answer by a Chris Degnen with the relevant formula(s): adjusted = (p - (1 + inf)^-n*p)/inf; pv = Σ p2 (1 + r2)^-k for k = 1 to n ∴ pv = (p2 ...
149 views

### The penalty on early redemption of a personal loan

According to the TOS written here: https://www.sc.com/sg/personal-banking/tnc/en/_pdf/cb_all-tnc.pdf (bottom of page 51) 37.2 The following terms and charges will apply if you close the CashOne ...
3k views

### Should I buy a house because Mortgage rates are low

Interest rates are pretty low right now and a few of my friends are rushing to buy a house(even though the actual property prices are pretty high.) I was of an opinion that mortgage rates being low is ...
682 views

### Does a one time additional payment reduce the interest paid on a Prosper or Lending club personal loan

I have a loan with Lending Club with a certain interest rate. So every month I pay the principal as well as about \$200 in interest. Assuming the loan balance left is \$20000 and the interest rate is 7%,...
4k views

### Cash Advance causes recurring interest fee after paid in full

In January I made a cash advance of \$110 with my credit card. In Februaury, I paid off January's balance (+\$10 cash advance fee +\$1.82 cash advance interest) in full by the statement due date. This ...
2k views

### What are the pros and cons of buying an item on installments with zero percent interest?

For example, currently Verizon is advertising an iPhone 6s for either \$649.99 or 24 monthly payments of \$27.08, i.e., \$649.92, which is essentially equal and there is no interest. The obvious ...
225 views

### Proper etiquette for loans from friends [closed]

I'm not sure that there is a universally accepted "proper etiquette" when it comes to repaying a loan from a friend, but I feel it necessary to be absolutely fair in respect of the time value of money;...
19k views

### What does a 30/360 day count convention mean?

I've been trying to understand day count conventions, but the Wikipedia article is confusing. It was my understanding that interest is usually compounded daily - I don't quite understand how it fits ...
2k views

### Does paying more frequently on a simple interest auto loan save me money?

My Auto loan is calculated by "simple interest". Would paying weekly save me money? If so, wouldn't paying daily save me even more money?
609 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? ...
952 views

### Mortgage vs. Loan?

I understand the math behind how banks calculate the interest to principal ratio throughout the amortization period. I want to know why banks want you to pay as much interest as possible first? In a ...
407 views

### How do credit card companies make money from cardholders who do not carry a balance? [duplicate]

How do credit card companies make money from cardholders who do not carry a balance? It seems credit card companies are eager to offer their services to borrowers even if they have a tendency to pay ...
23k 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 ...
491 views

### Paying off a mortgage early

I am thinking about buying a property with a mortgage in the UK, living in it for 3 years, and then selling it. This is because at that point, I will probably be moving out of the city I am currently ...
475 views

### How can I determine the interest rate, given increasing monthly deposits and a final amount?

I need help to determine the interest rate of this investment. The initial value is nothing The monthly investment is R500. It stays R500 a month until the year is over and increases by R50. Thus, ...
4k views

### Do nonresidents of Canada have to pay income tax on interest income earned in Canada?

I am a Canadian citizen, but nonresident of Canada for tax purposes. I currently live in the US. I have a savings account at a Canadian bank in Canada and have earned a little bit of interest, around ...
768 views

### Formula that predicts whether one is better off investing or paying down debt

This is more of a statistics/probability question but the implications for personal finance are obvious. Let's say you have extra cash (assume tax-advantaged space is already maxed out) and are ...
226 views

### How does a variable interest rate loan work?

I took out a \$100,000 loan on my house on a variable rate loan at 4.5% for 30 years. For example, see this calculator. Assuming the interest rate stays the same, the final cost will be \$145,000. In ...
353 views

### Can credit card company charge interest even if all the bills are paid in full by due date?

I recently started using a credit card. I get the credit card statement by 22nd of every month, and the payment is due by the 1st of next month. The full amount is automatically debited from my ...
28k views

### Difference between dividend and interest

A representative at my federal credit union used dividend and interest exchangeably in our communication, claiming the two were the same concept in their financial institution, which doesn't sell ...
85 views

### Lowest Interest Options for Short-Term Loan

I am looking for a short-term loan in the amount of \$15k to buy some household items. I will be able to return the money in full by 3 months I have a credit score of 760+. Currently, I am seeing ...
328 views

### What return are you getting on your money from paying down a mortgage on a rental property?

If you bought a \$200,000 rental home with 20% down, what is the return on investment you're earning over the full 30 year period from paying down the loan using the rental income? We will assume the ...
52 views

I'm starting to learn a lot about finance/investing on my own but I'm struggling with the calculations behind Add-On CDs. I opened an 14-Month Add-On CD with a \$1000 deposit with a monthly \$30 add-on ...
137 views

### Free brokerage vs paid - pros and cons

I currently have 30 free trades per month with a brokerage firm due to my account balances at their banking arm. I will typically trade a few shares of various companies in very small dollar amounts. ...
196 views

### Savings or mortgage overpayment

This question might be too simple, but I just want to make sure I am not missing a crucial detail. I currently have a mortgage which allows free overpayments (up to 10% of the mortgage value each ...
315 views

### How can I get more interest than the 2.8% my bank is offering me on my \$60,000 AUD? [closed]

I have recently been given a \$60,000 AUD for the deposit on a house. I have since discovered that I am not earning enough to get a good enough mortgate. I think if I wait a couple of years I'll be ...
2k views

### home loan part payment with emi effect - revised emi amount?

Loan Amount 1,215,371.00 Annual Interest Rate 10.15% Term of Loan in Years 12 First Payment Date 10/09/2014 Payment Frequency Monthly Compound Period Monthly ...