# Interest rate?

#### Lightfire

Joined Oct 5, 2010
690
I looked in a famous bank here in Ph and look at interest rates.

Ammm, the minimum balance to earn interest is P10,000 (pesos) and the interest rate is 0.25%. O_O

Questions:
1. is interest rate per annum (year)?
2. if so. if i have 10,000 in the bank (in a year) so i have earned an interest of 2500 ? wow

thnx

#### MrChips

Joined Oct 2, 2009
23,541
1. Yes
2. No. It is 25.

#### Georacer

Joined Nov 25, 2009
5,182
Some banks give lower interest, but give returns every month. Small letters ftw.

#### spinnaker

Joined Oct 29, 2009
7,835
2. No. It is 25.

Mr. Chips. Why did you need to spoil Lightfire's new found fortune.

#### jimkeith

Joined Oct 26, 2011
540
Go to the coin shop and purchase a 1/10oz Chinese Panda

#### maxpower097

Joined Feb 20, 2009
816
I know if you put like $20 in a bank account and forget about it a couple years you'll make like$3. This is a big part of what everyones fighting about right now. The gov. has made it where income from intrest or investments pays a very low if any tax rate. Money earned by actual work is taxed much higher. Thats why you have Romney, Buffet, and all the other mega wealthy people paying so little in taxes. And then comparing it to their secretaries salaries that are in a way higher tax bracket.

And heres how someone in my family does it. I believe they are worth around 20 million. With 0 investments and just storing that money in the bank, may be a CD but its totally safe and can't be lost. they earn $150,000 a year in interest. So each year their savings go up by around$150,000 from that alone. Not to mention they also make huge sums of money by buying land the city or state is gonna need in 2 months then selling it to them for 5 times what they paid. And no this isn't legal they have someone high up telling them what to buy.

#### tracecom

Joined Apr 16, 2010
3,944
I know if you put like $20 in a bank account and forget about it a couple years you'll make like$3.
$3 in interest on$20 for 2 years is 7.5% per year. I wish I knew where I could get that on FDIC insured investments.

#### joeyd999

Joined Jun 6, 2011
4,477
...The gov. has made it where income from intrest or investments pays a very low if any tax rate. Money earned by actual work is taxed much higher. Thats why you have Romney, Buffet, and all the other mega wealthy people paying so little in taxes. And then comparing it to their secretaries salaries that are in a way higher tax bracket.
The money invested *has already been taxed*. By investing it, the money is doing *actual* work by providing capital to someone else to create jobs. It has been *proven repeatedly* that increasing the 'capital gains' rate reduces capital investment, thereby hurting those who's jobs depend on it.

And heres how someone in my family does it. I believe they are worth around 20 million. With 0 investments and just storing that money in the bank, may be a CD but its totally safe and can't be lost.
Who says its safe? Here in the US, the maximum deposit amount that can be insured is $250,000 by the FDIC. Beyond that, you can still lose everything if your bank goes under. They earn$150,000 a year in interest. So each year their savings go up by around \$150,000 from that alone.
That is a *very* bad investment! They are 'earning' 0.75% annually on their money. This is less than inflation! Therefore, the purchasing value of their investment is dropping, year over year. They are *losing* money, not making it!

Not to mention they also make huge sums of money by buying land the city or state is gonna need in 2 months then selling it to them for 5 times what they paid. And no this isn't legal they have someone high up telling them what to buy.
This is called crony-capitalism. The gov't officials who enable this ought to be drawn and quartered.