Recently, I've become obsessed with my finances. I am currently in the home-buying process, and I have worked very hard to pay off all of my loans, and start saving money every month.
I'm a newbie at this saving thing, so I looked into everything I could find to discover the best ways to save long-term and short term. Since I work from home as an independent contractor, I needed to find a way to keep the money I might need come tax time.
I settled with a money market account from Marcus.com. I've only had them for a few months, but so far, I have had a great experience with them! They also have an incredible interest rate- 2.25% at the time of this writing!
Since I like to see my savings grow, I wanted to understand better how it works. If you're reading this, I'm assuming you do, too!
Interest Rate / 100 / 365 = daily interest
For an interest rate of 2.25% it would work like this:
2.25 divided by 100 divided by 365 =.00006164
New number x balance in account
Let's use $3,000 as an example:
3,000 x .00006164= .18
That's 18 cents a day.
new number x days in month
.18 x 31 days = 5.58
This will (roughly) be the interest you will make in a month.
Hope this helps!
Jillian Shanahan is an online job coach, mentor, and teacher.