Do I still get my APY from my online bank if I don't have the money in for a full year?

I want to put $2500 in my savings account that has a 5% yeild, but I will need to use the money next June. It is an annual yeild, so if I only have a few hundred dollars in there by next August(1 year away) is that the ammount they will use to give me interest or can I still get the yeild on the full 2500 that I will have used by that time?

Do I still get my APY from my online bank if I don't have the money in for a full year?
lets say it is compounded quarterly as in most cases you will receive the apr for the three quarters and part of the third quarter!!!
Reply:The 5% is an Annual Percentage Yield. That means that in one year you would make a 5% yield (not a 5% return, there is a difference but a small and highly technical difference).





To make a (very) rough estimate of your yield, divide .05 by 365 (0.000136986)


Then mulitiply 0.000136986 times the number of days you plan on having it in the bank.





Notice that this is a very rough estimate and depending on how the bank calculates the interest (simple interest, compound monthly, compound daily, compound infinitely) it could be very different.





To get a better look at it, email the bank directly and get a better estimate of your expected return.





Hope this helps,


Good luck!





PS This assumes that this is a simple savings account with a 5% interest rate. If it is a CD (certificate of deposit), savings bond, brokerage account, or any other investment vehicle besides a savings account you will be subject to fees that could wipe out any and all gains you might have made previously. Check on this carefully!
Reply:Your annual yield will most likely be calculated daily. You will get an annualized return for as long as the money is there. They will not pay interest on money that you withdraw. If they have a penalty, look for another bank or mutual fund company that has a money market with around 5% annual yield.