If your bank pays an annual interest rate of 1.5% of balance exceeds $750 and it averages $815 but it falls below $750 for 4 months do you get the other 8 months interest or you get none because of the 4 months it fell below?
To determine whether you would receive interest for the remaining 8 months or not, we need to analyze the conditions set by your bank. Based on the information provided, your bank pays an annual interest rate of 1.5% on balances that exceed $750.
Let's break down the scenario:
1. The bank pays an annual interest rate of 1.5%.
2. The average balance is $815.
3. The balance fell below $750 for 4 months.
From this information, we can infer the following:
- If your average balance for the entire year is above $750, you would earn interest on the entire balance.
In your case, the average balance is $815, which is above $750. However, it doesn't specify the average balance for the entire year. If the average balance is above $750 throughout the year (even with 4 months below $750), you would still receive interest for the remaining 8 months.
To calculate the interest, you can use the formula: Interest = Average Balance * Interest Rate.
For example, if the average balance for the remaining 8 months is $815, you would calculate the interest as follows:
Interest = $815 * 1.5% = $12.23.
Therefore, if the average balance remains above $750 for the entire year (despite the 4 months falling below), you would receive interest for the other 8 months.
It's worth noting that the specific terms and conditions of your bank may vary, so it's advisable to consult your bank or refer to your account agreement for accurate information regarding interest calculations and requirements.