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3

The wealthy don't simply bank like us but with more zeroes at the end. If you're a "$2 million in my checking account is a possibility" type of person, you certainly have an accountant. You have investment advisors managing an investment portfolio sitting in investment accounts (at the very least). You're not putting money in a checking account except when ...


2

There are two things to consider. They can set a maximum amount. The fact that they are still paying the same rate all the way to $2,000,000 is amazing. Some banks will only pay their high rate if your balance is between two amounts. If it is lower they pay way less than 1%, if it is over the higher amount they credit the excess at a very low rate. The ...


8

An account that offers immediate withdrawals is a risk for the bank. Part of the rationale for savings accounts relies on this being spread between a lot of customers so they don't need to have enough cash on hand to repay everyone's balance. They don't really want to have multi-million accounts that could cause a cash flow risk. If you have that much ...


1

The key item is that on the page for savings accounts: Rate is variable and may change after the account is opened That savings account doesn't have a guaranteed rate. It can change tomorrow, and the day after that...


1

All the banks I have dealt with don't do the calculations as described in the answers by Lawrence and Ross Millikan but use a simplified method that works as follows. If the interest rate (APR) is, say, 0.24% per annum compounded monthly, then the amount of interest credited to the account at the end of the month is the average daily balance during the past ...


1

A typical approach is to compute interest daily on the balance of the account. You can make a spreadsheet that computes this. For each day, compute the interest from the previous day by multiplying the balance by 0.25%/365 (or 360 depending on the bank). Apply whatever rounding process the bank uses to get rid of fractional pennies. Then apply the day's ...


4

First, check the account’s terms and conditions regarding interest payments. Some don’t pay interest if you make a withdrawal that period. Others require a deposit in addition to no withdrawals. Regardless of the ‘gotchas’, they should also tell you on what basis interest is earned. It could be the minimum balance that period. It could be the minimum ...


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