"Interest is 10% per year (year) and 0.8 percent every month," says PiggyVest on Twitter. That's a daily rate of 1.6 percent. Not bad if you have an account with them!
They also tell us that there are no fees to join or leave the program. So, if you decide not to pay your balance in full each month, you won't be charged any fees.
In addition, if you fall behind on your payments, they will not charge you extra fees. If you can't pay back the loan within a specified time, however, they will increase the rate at which they charge you.
Finally, if you sell your device before paying off the loan, they say that you are responsible for returning it and paying off the remaining balance. They don't like people keeping devices that they cannot return.
Overall, this product offers competitive rates when compared to other credit card debt management programs. In addition, there are no joining or leaving fees, so you won't lose any money by trying it out.
The only downside is that you must pay back the loan in full each month.
Monthly Income FD Schemes Interest Rates
|Top banks monthly income FD interest rates|
|Bank||Interest rate||Tenure range|
|Kotak Mahindra Bank||4.50% to 5.25%||365 days to 389 days|
|IDFC FIRST Bank||5.25% to 7.00%||181 days to less than 1 year|
|Union Bank of India||4.50%||181 days to less than 1 year|
The amount of interest you may make on PS1 million is determined on the interest rate and period. A 5% interest rate will yield you PS 51,162 in a year or PS 983 in a week. With interest rates at an all-time low, as you'll see below, it's more difficult than ever to generate money from money these days. However, there are still options available for those who know how to look.
There are two ways to approach this question: the easy way and the right way. The easy way is to use a calculator and plug in some numbers. Computers were made for this kind of work and can do the calculation for you in seconds. The correct way is to understand what $1M buys you today vs. what it bought you 10 years ago. Only then can you come up with an accurate answer.
In 2007, one million dollars would have bought you a nice house in most parts of the country. Today, that same sum would buy you a small apartment in urban centers like NYC or DC. If your location isn't listed here, then consider the fact that real estate markets are rising across the board once again. There are also credit cards that offer millions of dollars in cash advances every month. Using one of these cards could help you cover the cost of renting a luxury apartment for a few months.
The point is that you need to think about where you live and how much money you need annually before answering this question.
Interest can be compounded on a daily (365 times a year), monthly (every calendar month or 12 times a year), quarterly (every three months or four times a year), semi-annually (every six months or twice a year), or annual basis (once a year).
On a daily basis, interest is calculated based on every day from the first interest payment to the last. So if you were to pay quarterly interest, it would be once every three months. If you had an account with $10,000 and wanted to calculate how much interest you would earn over one year, you would use this formula: 10,000 x 0.0125 = $125.00. This means that you will make $125.00 in interest over the course of a year.
Interest is paid periodically throughout the year. For example, if your bank allows online banking and you want to know when your interest is being posted to your account, look for messages indicating that interest has been posted to your account. The amount of interest posted to your account may not always be the same as the interest you earned because not all banks post interest immediately. Rather, they wait until at least once a month to post any interest earned during the previous period.
Some banks allow you to request immediate posting of interest earnings.
However, due to compounding, yearly interest is usually larger than that. Instead of being paid out monthly, the invested amount grows over a twelve-month period. However, if you can get the same interest rate for monthly installments as you can for annual payments, go for it. It will help you avoid interest charges.
Generally, people prefer to keep their money in cash or savings accounts because these investments pay no interest. But, by keeping your money in these vehicles you are not using it to make bets or investments; you are just parking it safely so it can grow on its own.
The only time when it makes sense to keep money in cash is if you need the immediate funds to cover a large expense. If this is the case for you, then sure take out what you need and put it in an envelope or bag to be safe. When the expense is done, put the money back into your account.
In conclusion, whether you want to receive your interest monthly or annually depends on how much risk you are willing to take with your money. If you can't afford to lose any money, then monthly is not a good idea because you will never see the return on your investment. However, if you can handle losing some of it every now and then, then yearly is a great option because you will always have more money to spend.
It's a shame that a million dollars only yields you $100,000-$200,000 in risk-free income per year. That's actually quite low. Assuming you kept the money in a simple investment account without touching it for ten years, it would be worth well over a million dollars.
In fact, if you deposited a million dollars in a high-interest savings account today, you could expect to earn nearly $10 million over the course of a decade. That's more than enough to cover your monthly mortgage payment or other debt obligations and leave some left over.
Of course, things are not so simple. If you cannot afford a million dollars in debt, you can't afford a million dollars in savings either. A better solution might be to look at ways to lower your debt burden or increase your income. Or perhaps you want to save up for a big purchase like a house or car? Either way, understanding how much money you need after taking the risk of investing wisely is key to making sure you don't go beyond your means.
All things considered, we think $10 million sounds about right. We'll even round up to $11 million for simplicity's sake.