MONKEY
Well-known member
- Joined
- Nov 27, 2002
- Posts
- 150
Sky,
Answer one excruciatingly simple question.
What would the APY need to be for a savings account that could deliver the $68.42 in interest from bi-weekly contributions of $100 over a six month period?
I maintain that is in the neighborhood of 21%. Most of you seem to think it is in the neighborhood of 5%. What do you think?
Andy is comparing apples and oranges and what he is saying makes sense if you are willing to look at what he is saying.
He is not saying that you are getting 20%. He is saying that if you were to throw the money into a cd, the rate of return would have to be much higher than 5% to match the return that you would make by doing this.
That being said, I still think the program is junk. By locking into this program you are guaranteed a 5% return based on the day you buy. The problem is that the stock ALWAYS spikes on those days and usually drops the days following. You could make the arguement that 5% is 5%. The problem is that it takes several days for the stock to be put into your account, and the transaction fees are quite high.