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A comment on Robinhood launches 3% checking account. Parent comment

Re:Robinhood launches 3% checking account by rexaliquid on Thursday December 13, 2018 @11:02AM (#18673290)
It's standard to talk in annualized interest rates to make simple comparisons between accounts. A daily interest rate of 0.008 % will compound up to just over 3 % of effective annual rate.
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Re:Robinhood launches 3% checking account by ikeboy on Thursday December 13, 2018 @12:43PM (#18674283)
If the daily interest rate is 0.008 then the annualized rate is 2.92%, not 3%. The standard is to multiply by the number of periods, not to take compounding into the calculation.
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Re:Robinhood launches 3% checking account by talltimtom on Thursday December 13, 2018 @01:59PM (#18674991)
Why would the standard be to calculate a number that has no use and isn’t rooted in reality? If the rate is 3% annually and paid out daily, the the daily rate is the number that compounded yields 3% annually....
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Re:Robinhood launches 3% checking account by ikeboy on Thursday December 13, 2018 @04:17PM (#18676202)
Because it makes it easy to calculate how much is distributed. Just take the annual rate, divide by number of periods, and multiply by the amount of principle.
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Re:Robinhood launches 3% checking account by rexaliquid on Thursday December 13, 2018 @06:35PM (#18677139)
That's true of the nominal rate. A nominal 3% divides to an effective daily rate of 0.0082 %. But the effective rate is (1 + Nominal Rate / n)n - 1 or just over 3.2%.
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