Interest on Savings accounts

[dobbins]

Hi folks, sorry this may be a basic question but can someone explain to me if there is any advantage in having interest paid daily, monthly or annually?

e.g. if i put 1000 euros in each of 3 different accounts, each with 5% EAR and one has interest calculated daily, one monthly and one annually - is the daily one the best or are they all the same?

i.e. after 1 year do i end up 1050 euros in each??

thanks

 

[capall]

The more often the interest is paid the better as you get interest on the interest

 

[South]

If the interest rate has been annualised already then they are all the exact same thing.

 

[ClubMan]

Yes - 5% EAR/CAR is the same no matter what other differences there are between accounts quoting that return.