Comments on: Getting a big refund? Ask yourself why you’re lending the government interest free money. http://financedad.com/getting-a-big-refund-ask-yourself-why-youre-lending-the-government-interest-free-money/ Wed, 26 Oct 2011 03:37:42 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: FinanceDad http://financedad.com/getting-a-big-refund-ask-yourself-why-youre-lending-the-government-interest-free-money/comment-page-1/#comment-179 FinanceDad Thu, 21 Jan 2010 03:57:23 +0000 http://financedad.com/?p=2123#comment-179 No, you're right. The problem I had was starting with $500... that inflated the number accordingly. I will correct immediately, thanks for pointing that out. No, you’re right. The problem I had was starting with $500… that inflated the number accordingly. I will correct immediately, thanks for pointing that out.

]]> By: jwiz http://financedad.com/getting-a-big-refund-ask-yourself-why-youre-lending-the-government-interest-free-money/comment-page-1/#comment-160 jwiz Wed, 20 Jan 2010 22:00:56 +0000 http://financedad.com/?p=2123#comment-160 How do you get $631 by earning 4% interest for a year? Even if you had all $6000 in at the start of the year (rather than $500, $1000, $1500, etc.), you'd still get: 6000 * (1+(.04/12))^12 = $6244.20 Or did I flub some math somewhere? I just don't see how you can get more than 10% yield (631/6000) from 4% interest rate, especially since you are adding the $500 each month. How do you get $631 by earning 4% interest for a year?

Even if you had all $6000 in at the start of the year (rather than $500, $1000, $1500, etc.), you’d still get:

6000 * (1+(.04/12))^12 = $6244.20

Or did I flub some math somewhere? I just don’t see how you can get more than 10% yield (631/6000) from 4% interest rate, especially since you are adding the $500 each month.

]]> By: FinanceDad http://financedad.com/getting-a-big-refund-ask-yourself-why-youre-lending-the-government-interest-free-money/comment-page-1/#comment-159 FinanceDad Wed, 20 Jan 2010 19:17:23 +0000 http://financedad.com/?p=2123#comment-159 As mentioned in the reddit thread there are multiple places that will pay you 4% interest or more. <a href="http://www.highyieldcheckingdeals.com/" rel="nofollow">http://www.highyieldcheckingdeals.com/</a> Check your local credit union too. Granted, some of these places require deposits of $500 or more. Moreover, the point was to illustrate the potential. Using interest rates right now isn't indicative of historical rates or future rates. Thanks for your question! As mentioned in the reddit thread there are multiple places that will pay you 4% interest or more.

http://www.highyieldcheckingdeals.com/

Check your local credit union too.

Granted, some of these places require deposits of $500 or more. Moreover, the point was to illustrate the potential. Using interest rates right now isn’t indicative of historical rates or future rates.

Thanks for your question!

]]> By: PopeTackler http://financedad.com/getting-a-big-refund-ask-yourself-why-youre-lending-the-government-interest-free-money/comment-page-1/#comment-158 PopeTackler Wed, 20 Jan 2010 17:17:14 +0000 http://financedad.com/?p=2123#comment-158 >savings account at the end of the month, which >earns %4 interest, compounded monthly That exists? >savings account at the end of the month, which >earns %4 interest, compounded monthly

That exists?

]]> By: FinanceDad http://financedad.com/getting-a-big-refund-ask-yourself-why-youre-lending-the-government-interest-free-money/comment-page-1/#comment-157 FinanceDad Wed, 20 Jan 2010 16:09:48 +0000 http://financedad.com/?p=2123#comment-157 Thanks for your comment! Thanks for your comment!

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