Quote:
Originally Posted by DNSB
Hmmm... what is the current interest rate paid on a savings account in your area? In this area, a high interest rate would be 5% annual though in most cases, that is only paid for the first 90 days and there are nasty bits such as a $5.00 charge for any transaction (deposit or withdrawal). For most people, 2.50% is the more likely high rate.
Hmmm... quick visit to the calculator. $60 at 2.50% compounded annually would give you $69.58 after 6 years. At 5%, you would take 3 years to reach $69.46. Compare this to the immediate 16.67% return (60x1.16667 is 70.00).
So if you are planning on spending $70 or £70 on ebooks over the next year, the ROI from purchasing a $/£60 gift card and getting the bonus $/£10 gift card is definitely the better choice.
|
My point is that I choose not to hand over 60 pounds (approx. $81.00) and to just wait for an interesting ebook to come along for me to use that credit (which would actually become approx. $94.00 with Kobo's current offer. And these offers, as we all know, come and go with general frequency).
I will be the 'holding company' for my money.
In terms of a bank's savings account's rate (and they go under different names), APYs vary, as we all know.
But I'm entirely in favor of anyone who wishes to choose to spend their money in ways they see appropriate for their legal desires.
