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A comment on Robinhood stock trading app confirms $110M raise at $1.3B valuation. Parent comment

Re:Robinhood stock trading app confirms $110M raise at $1.3B... by vivekd on Wednesday April 26, 2017 @11:16PM (#14208934)
from the link

>IB accrues interest on a daily basis and posts actual interest monthly on the third business day of the following month.

from investopedia

>Interest accrues on loans, such as a mortgage, or on savings accounts and investments. Daily accrual means interest amounts are added to the account balance every day. Interest can accrue on any time schedule; common periods include daily, monthly and annually

it would be different if the rates were annual percentage rates, but your site doesn't specify that.

no I don't know anything about finance but I got google.

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Re:Robinhood stock trading app confirms $110M raise at $1.3B... by morgante on Wednesday April 26, 2017 @11:24PM (#14208961)
A little knowledge is dangerous.

You found the right terms but totally missed the meaning. Daily accrual means that your interest for that day is calculated daily. It doesn't mean the interest rate is 2.4% a day.

Did you even think about this logically? 2.4% a day would be 876% a year. That's obviously insane.

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Re:Robinhood stock trading app confirms $110M raise at $1.3B... by sobani on Friday April 28, 2017 @03:04AM (#14217432)
2.4% a day would be 574756% a year (yes 5747 fold). Compound interest FTW! (or For The Bankruptcy in this case)
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