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Interest Rates

Select two banks in your area that offer debit cards on their checking accounts.
Find the current interest rates and calculate the annual interest you would receive from each of these accounts on a deposit of $5000. If you cannot find checking accounts that offer interest on even that high of a deposit, then find out what interest their savings accounts use, and calculate the interest amounts from them.
Should people deposit their money with the bank that has the highest interest rate if they will be keeping a $5000 balance? What other factors (fees, services, etc.) should they take into account as they are evaluating which account to open?

Note: you need to research the interest paid on checking accounts at two separate banks. Assume you have $5000 in your debit card checking account. Calculate the interest you would have earned if this account earns simple interest and stays at the $5000 level all year.

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Please see response attached.

Posting ID: 55462
How to Respond to Problems?

Mathematics, Other
Year 2
Interest rates
1. Select two banks in your area that offer debit cards on their checking accounts.
Find the current interest rates and calculate the annual interest you would receive from each of these accounts on a deposit of $5000. If you cannot find checking accounts that offer interest on even that high of a deposit, then find out what interest their savings accounts use, and calculate the interest amounts from them.
Response:
To calculate the interest for one year (per annum) do the following calculations:
Annual Interest Calculation: $5000.00 X Annual Interest Rate = Total Annual Interest
a. TD Canada Trust - ...

Solution Summary

The solution assists with finding the current interest rates and calculating the annual interest that would be received from each of the accounts.

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