The 1.01% Solution

From our Defining APR Down desk:

Citibank (official slogan: Thanks, suckers!)  is currently running a newspaper ad with the headline, “DREAM 1.01% BIGGER.”

The ad promotes the Citibank® Savings Plus Account, which offers a whopping 1.01% APY (Annual Percentage Yield – the new APR) if you dump $25,000 into it.

(Full disclosure: The hardworking staff’s checking account – not at Citibank, but might as well be – earned exactly $.02 last month. Go figure.)

So forget what Albert Einstein supposedly (according to snopes.com) said about compound interest being “the most powerful force in the universe.”

You don’t have to be a Mensa member to know how powerless compound interest is these days.

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1 Response to The 1.01% Solution

  1. af says:

    If it wasn’t for the safety of FDIC, and the convenience of checking and electronic payments, we would almost be better off stuffing the money in a mattress, or a hollowed out cabbage, for all the interest they pay us. I hope the banks are enjoying the cheap, nearly free access to all those funds they use for their investments.

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