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The BMO Alto High-Yield Online Savings Account offers an impressive APY of 4.10%, one of the best rates available today. This competitive rate applies to your entire balance, whether it’s $5 or ...
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The APR concept can also be applied to savings accounts: imagine a savings account with 1% costs at each withdrawal and again 9.569% interest compounded monthly. Suppose that the complete amount including the interest is withdrawn after exactly one year. Then, taking this 1% fee into account, the savings effectively earned 8.9% interest that year.
This makes a steady state unsustainable except at zero output, which again implies a consumption level of zero. Somewhere in between is the "Golden Rule" level of savings, where the savings propensity is such that per-capita consumption is at its maximum possible constant value. Put another way, the golden-rule capital stock relates to the ...
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